Global stocks slip amid lack of detail on trade deal

A global index of stock markets slipped on Monday as signs of progress in the China-U.S. trade dispute drew mixed a reaction from investors, with some cautioning over a lack of detail in the initial stages of the agreement.

Stock markets in Asia cheered U.S. President Donald Trump’s outlining the first phase of an agreement to end a trade war with China and suspending a threatened tariff hike, but European shares slipped.

The pan-European STOXX 600 index was down 0.75% in early trade in London. Germany’s DAX, dominated by companies exposed to China, slipped 0.5%. All European country indexes were in the red. MSCI’s All-Country World Index, which tracks shares across 47 countries, was down 0.06% on the day. The emerging trade deal, covering agriculture, currency and some aspects of intellectual-property protection, would represent the biggest step by the two countries in 15 months. But investors advised caution.

Contributing to the gingerly reception of phase 1 of the trade agreement were data showing a further contraction of Chinese exports and imports in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day.

Sterling fell to $1.2556, retreating from a 15-week high of $1.2708 on Friday on optimism Britain could reach a deal on Brexit with the European Union. However, both British and EU officials said on Sunday more work would be needed to secure an agreement.

Spot gold gained 0.05%, last trading at $1,490.20 per ounce. Oil prices pared gains made on Friday after reports that an Iranian state-owned oil tanker had been attacked in the Red Sea. Investors were also watching Turkey’s incursion into Syria as the White House threatened to impose sanctions on Ankara. Brent crude futures eased 1.14% to $59.82 a barrel. U.S. crude lost 1.04% to $54.13 a barrel.