Stocks whipsaw on conflicting signals

BEIJING — Stocks swerved up and down Thursday before ending with a modest gain after China sent conflicting signals about how it would respond to President Donald Trump’s threats of new tariffs and investors took some solace in upbeat economic and earnings data.

The positive signs included an increase in U.S. retail sales in July, according to the Commerce DeThe partment, and stronger-than-expected earnings from Walmart, which raised its outlook for sales this year. The Chinese e-commerce giant Alibaba also released strong financial results.

By the end of trading Thursday, the S&P 500 gained 0.25 percent. Stocks in Europe ended lower, but clawed back some of their earlier losses.

The swings were just the latest in a turbulent stretch for investors. Markets around the world have been whipsawed this month by mixed signals about the state of the trade war between the United States and China and growing evidence that the dispute is already slowing global growth, especially in the manufacturing sector.

The volatility reflects the enormous uncertainty investors are feeling as the high-stakes dispute between the world’s two largest economies — one run by an opaque government, the other led by a president prone to firing off inflammatory messages on Twitter — drags on.

On Thursday, a statement from the Chinese government — released just before the start of U.S. trading — helped to lower the tension.

“We hope the U.S. can work in concert with China to implement the two presidents’ consensus that was reached in Osaka, and to work out a mutually acceptable solution through equal-footed dialogue and consultation with mutual respect,” Hua Chunying, the foreign ministry representative, said in the statement.

The consensus in question was hashed out by Trump and Xi Jinping, China’s leader, in June, when they agreed to resume trade talks.

truce appeared to disintegrate this month amid Trump’s threats of new tariffs and a decision by Chinese officials to allow the country’s tightly controlled currency weaken, developments that suggested the two sides were girding for a standoff that could last indefinitely.

In recent weeks, data has shown that the fight is taking a toll on industrial economies around the world. Closely watched surveys in Britain, China, Germany and Japan have all indicated that the industrial sectors in those countries are contracting.