Global markets retreat from highs

Oil prices fell and global equity markets slid on Friday, halting a week-long rally on hopes an end to the U.S.-China trade war was near, as investors parsed statements from Beijing and Washington on where they stand on rolling back tariffs.

Doubts arose about when a deal would be signed as fierce opposition to rolling back existing tariffs surfaced from the White House on Thursday, a position U.S. President Donald Trump confirmed when talking to reporters on Friday. Trump said he has not agreed to roll back tariffs on China but that Beijing would like him to do so.

European shares broke a five-day winning streak on Friday after U.S. President Donald Trump said he has not agreed to roll back tariffs on China, adding to uncertainties on whether the two sides were really getting close to signing a partial deal.

The pan-European STOXX 600 index ended 0.3% lower after gaining 2.5% over the last five sessions. Defensive plays including healthcare and utilities were the only sectors to rise, suggesting appetite for risk remained muted.

Trump’s comments worsened sentiment already hit by a similar statement from White House trade adviser Peter Navarro as well as sources who said the plan faced fierce internal opposition at the White House. That ended days of optimism as officials said tariffs would be rolled back and the deal would be signed soon, which along with an earnings season that has proved less weak than expected, helped STOXX 600 log its fifth straight week of gains.

MSCI’s gauge of stocks across the globe shed 0.19% and the pan-European STOXX 600 index lost 0.27%.

Earlier in Asia, shares retreated from sixmonth highs.

Benchmark Brent crude fell 80 cents to $61.49 a barrel while West Texas Intermediate (WTI) crude fell 58 cents to $56.57 a barrel. Gold prices fell and were on track for their biggest weekly decline in almost three years. This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000.

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