Global economic slowdown had been renewing concerns, as investor’s appetite for shares were snapped perilously, dragging down the global stock indexes and bonds lower, while the Great Britain Pound kept gaining momentum despite Brexit uncertainty, resurfacing in to a fresh three-monthly high at 1.3037 against American dollar.
On Wednesday, the 23rd of January, in the Asia Pacific and early European trading sessions, market remained choppy and unnerving, as there had been widespread worries over the progress between United States and China trade conflict.
Market mood got soured overnight, after a Financial Times report had revealed that the Trump administration had overruled a Chinese offer for preparatory trade talks, ahead of high level negotiation due to be held next week.
Although the White House Economic Adviser, Larry Kudlow, denied the report, he also added that the US president, Donald Trump would never soften his position to seal a trade deal with China. While this report was being written, January 23rd, GMT.
12.20, the MSCI world equity index, MIWD00000PUS, which keeps track of shares of 47 countries, had been down by 0.1 percent and UK's FTSE 100 had drained 0.94 percent, while Germany's DAX was down by 0.20 percent.
Blaming worries over US-China trade talk behind the baleful tone of Wednesday’s morning market, a deputy chief investment officer at the Brooks McDonald, Edward Park said, “The main culprit for the risk-off tone this morning is the change in sentiment around U.S.-China trade talks ....
That seeped into Asia overnight and Europe this morning. ” Citing statistics, the Pan-European Stock index, STOXX was down by 0.5 percent, as a fresh batch of distressful data from European companies grudged the market sentiment, while the MSCI broadest index of Asia-Pacific shares outside Japan, MIAPJ0000PUS had dropped 0.2 percent, after surging on to a seven-week high on Monday, January 21st.