Foreign investors continued to pull money out of Asian equities in July, marking the ninth consecutive month of net selling across seven major Asian markets. Investors sold a net $25.5 billion worth of stocks, with the sell-off concentrated in technology-heavy markets such as Taiwan and South Korea.

Taiwan accounted for nearly $23 billion of the July outflows, while South Korea saw another $6.3 billion leave its equity market. Concerns over AI-related spending, cash burn, semiconductor demand and the sustainability of corporate growth have weighed on investor sentiment.

Amid the broader regional sell-off, India stood out by attracting $2.1 billion in foreign inflows in July. Thailand also recorded strong inflows, while Indonesia and the Philippines saw smaller gains.

Asian Markets Face $25.5 Billion Foreign Outflow as Taiwan, South Korea Lead Tech Sell-Off

Global markets snapped back from a horrific bloodbath on Tuesday after Russia announced the withdrawal of its troops from Ukraine, indicating a possible thaw in the border conflict.

The pan-European&nbsp;Stoxx 600&nbsp;index provisionally ended up 1.3 per cent higher, with healthcare stocks adding 2.1 per cent to lead gains as almost all sectors and major bourses entered positive territory.

The Dow Jones Industrial Average jumped about 400 points, or 1.2 per cent, helped by a 3 per cent jump in Boeing.

The S&amp;P 500 climbed 1.6 per cent and the technology-heavy Nasdaq Composite advanced 2 per cent.

All three major benchmarks were down in the three prior sessions.

The S&amp;P 500 is about 8 per cent from its record high. The small-cap benchmark Russell 2000 rallied 1.9 per cent.

WTI crude prices fell 3 per cent, while the 10-year Treasury yield jumped to 2.04 per cent as tensions eased.

The VanEck Russia ETF, a US-traded fund which invests in big Russian stocks, jumped nearly 5 per cent.

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-pulls-back-some-troops-from-ukraine-border-kyiv-says-we-will-see-then-believe-453452">Russia pulls back some troops from Ukraine border</a>

While Tuesday’s gains didn’t cancel out Monday’s losses, they helped repair some of the damage inflicted on the value of Britain’s top firms from sweeping fears over an imminent Russian insurgency of Ukraine.

India’s Sensex also saw a sharp rebound earlier in the day, prompted by reports that Russia is de-escalating tensions with Ukraine.

After a bruising sell-off on Monday, Indian equities rebounded to close higher. The gains on domestic markets were led by banks, auto, IT, metal and FMCG stocks.

Also read |&nbsp;<a href="https://www.wionews.com/world/ready-to-work-together-with-the-west-says-putin-in-joint-press-conference-with-olaf-scholz-453543" hreflang="en">'Ready to work together' with the West, says Vladimir Putin</a>

The Sensex surged 1,736.21 points or 3.08 per cent to close the day at 58,142.05, and the Nifty rose 509.70 to 17,352.50.&nbsp;

All sectoral indices ended higher, with auto, realty, IT, FMCG stocks, banks, PSU banks up 2-4%. BSE MidCap and SmallCap indices rose 2 per cent each.

Oil prices, which have shot to seven-year highs on the Ukraine crisis, tumbled as much as four per cent in value.

Wheat price also cooled on Tuesday. Russia and Ukraine are major producers and exporters of the commodity.

Fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied, had gripped markets on Monday.

But, Russian Defence Ministry spokesman Igor Konashenkov confirmed&nbsp;on Tuesday that&nbsp;military units from the southern and western districts of Russia&nbsp;had begun returning to their garrisons.

(With inputs from agencies)

Global markets snapped back from a horrific bloodbath on Tuesday after Russia announced the withdrawal of its troops from Ukraine, indicating a possible thaw in the border conflict.

Global markets snapped back from a horrific bloodbath on Tuesday after Russia announced the withdrawal of its troops from Ukraine, indicating a possible thaw in the border conflict. The pan-European Stoxx 600 index provisionally ended up 1.3 per cent higher, with healthcare stocks adding 2.1 per cent to lead gains as almost all sectors and major bourses entered positive territory. The Dow Jones Industrial Average jumped about 400 points, or 1.2 per cent, helped by a 3 per cent jump in Boeing. The S&P 500 climbed 1.6 per cent and the technology-heavy Nasdaq Composite advanced 2 per cent. All three major benchmarks were down in the three prior sessions. The S&P 500 is about 8 per cent from its record high. The small-cap benchmark Russell 2000 rallied 1.9 per cent. WTI crude prices fell 3 per cent, while the 10-year Treasury yield jumped to 2.04 per cent as tensions eased. The VanEck Russia ETF, a US-traded fund which invests in big Russian stocks, jumped nearly 5 per cent. Also read | Russia pulls back some troops from Ukraine border While Tuesday’s gains didn’t cancel out Monday’s losses, they helped repair some of the damage inflicted on the value of Britain’s top firms from sweeping fears over an imminent Russian insurgency of Ukraine. India’s Sensex also saw a sharp rebound earlier in the day, prompted by reports that Russia is de-escalating tensions with Ukraine. After a bruising sell-off on Monday, Indian equities rebounded to close higher. The gains on domestic markets were led by banks, auto, IT, metal and FMCG stocks. Also read | 'Ready to work together' with the West, says Vladimir Putin The Sensex surged 1,736.21 points or 3.08 per cent to close the day at 58,142.05, and the Nifty rose 509.70 to 17,352.50. All sectoral indices ended higher, with auto, realty, IT, FMCG stocks, banks, PSU banks up 2-4%. BSE MidCap and SmallCap indices rose 2 per cent each. Oil prices, which have shot to seven-year highs on the Ukraine crisis, tumbled as much as four per cent in value. Wheat price also cooled on Tuesday. Russia and Ukraine are major producers and exporters of the commodity. Fears that Russia could invade Ukraine in the coming days, a claim the Kremlin has repeatedly denied, had gripped markets on Monday. But, Russian Defence Ministry spokesman Igor Konashenkov confirmed on Tuesday that military units from the southern and western districts of Russia had begun returning to their garrisons. (With inputs from agencies)

Russia-Ukraine crisis: Global markets snap back from one-day bloodbath as first signs of thaw emerge

Financial markets rebounded outside Asia on Tuesday following a global sell-off fueled by the deadly virus outbreak in China. Wall Street stocks were up, with the broad-based S&P 500 gaining 1.

Financial markets rebounded outside Asia on Tuesday following a global sell-off fueled by the deadly virus outbreak in China. Wall Street stocks were up, with the broad-based S&P 500 gaining 1.0 per cent and the tech-rich Nasdaq Composite Index advancing 1.4 per cent. In Europe, the main stock markets also closed with gains of close to 1.0 per cent after shedding around 2.5 per cent on Monday. The healthy US result was aided by defence contractors Lockheed Martin and United Technologies releasing healthy results that underpinned market sentiment, along with strong gains for several travel-oriented stocks, including Marriott International and Wynn Resorts. Apple stock rose 2.8 per cent after the market closed, following its announcement of record-high fourth-quarter revenue of $91.8 billion with a profit of $22 billion, according to earnings figures. The dollar gained against most other major currencies, and oil prices were higher as well. Also Read: Global Markets: China stock rally helps steady nerves, Russian rouble skids The US rally was aided by a report from the Conference Board showing US consumer confidence jumping more than expected in January. Wall Street and European markets posted losses of around two per cent on Monday fueled amid fears that the SARS-like virus outbreak in China was spreading fast. As traders sought safety, for example buying into gold, oil tanked on expectations that demand in China, the world's top consumer, will be hammered. But the improvement shows there is "some optimism that's crept into the market that maybe this coronavirus won't spread enough out of control to create a major epidemic crisis," said LBBW's Karl Haeling. Potential for further declines Neil Wilson, chief market analyst at Markets.com, warned markets to remain "open to further falls if it becomes clear that infection is spreading more rapidly, but for now, equity markets are entering a process of stabilization." China urged citizens to postpone foreign travel to curb the viral outbreak that has killed more than 100 people, as the first cases of human-to-human contagion were detected abroad. [ Beijing Stocks (Courtesy: Reuters) ] Washington also urged its citizens to "reconsider" travel plans to China, and United Airlines announced it will trim its service to the country from three US cities, citing a large drop in demand. The virus outbreak comes during the Lunar New Year break when hundreds of millions of people crisscross China and spend huge amounts of money. Analysts were concerned the crisis could become as bad as the SARS outbreak that rocked markets and the global economy 17 years ago.

World markets gain as data reassures nervous investors

Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as <a href="https://www.wionews.com/business-economy/global-markets-shares-swept-new-year-gains-gold-oil-prices-jumps-and-iran-trade-threats-272528">financial markets</a> reacted to mounting concern about a new strain of the flu-like virus in China. The World Health Organization called a meeting for Wednesday to consider declaring a global health emergency while authorities in China confirmed the coronavirus could spread through human contact. The mayor of Wuhan, where the virus may have originated, confirmed a sixth virus-related death.

Investors are worried about the threat of contagion as hundreds of millions travel for the Chinese Lunar New Year holidays, which peak over the coming weekend. Traders recalled the fallout from a Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-2003 that killed about 800 people globally and which China initially covered up.

<a href="https://www.wionews.com/business-economy/no-dearth-of-crude-oil-in-global-market-says-union-minister-dharmendra-pradhan-273737">Emerging market</a> stocks lost 1.58%. MSCI's broadest index of Asia-Pacific shares outside Japan&nbsp;closed 1.63% lower, while Japan's Nikkei&nbsp;lost 0.91%. Hong Kong, which suffered badly during the SARS outbreak, saw its index&nbsp;fall 2.8%. The overnight chill in Asia carried over to <a href="https://www.wionews.com/business-economy/global-markets-oil-gold-safe-haven-assets-gains-as-us-strike-kills-iranian-commander-271901">European markets</a>. Shares of luxury goods makers - which have large exposure to China - were among those declining the most.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/global-markets-asian-shares-lower-as-investors-book-decade-end-profits-271229">Global Markets: Asian shares lower as investors book decade-end profits</a>

A U.S. index of airline stocks fell 2.3% and hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped over 4%. The virus outbreak "seems to be the biggest negative," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "We may see U.S. markets try to spit it out because it doesn't have that much of an impact on U.S. economy."

<img alt="New York Stock Exchange" data-entity-type="file" data-entity-uuid="44f15713-342b-487d-90f5-6d86f21ace64" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2859%29_0.jpg" /> 
[&nbsp;Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ]

The Dow Jones Industrial Average&nbsp;fell 20.99 points, or 0.07%, to 29,327.11, the S&amp;P 500&nbsp;lost 1.13 points, or 0.03%, to 3,328.49 and the Nasdaq Composite&nbsp;added 1.12 points&nbsp;or 0.01%, to 9,390.06. The pan-European FTSEurofirst 300 index lost 0.16% and MSCI's gauge of stocks across the globe&nbsp;shed 0.29%.

In other markets, U.S.- and German 10-year government bond yields touched a two week low while the safe-haven yen&nbsp;strengthened 0.23% versus the dollar at 109.95.

"The fear is that it could be a SARS-type event, which was an economic issue," said Ellis Phifer, market strategist at Raymond James in Tennessee. "But this is all cautionary. The market is not panicking or anything."

Benchmark 10-year notes&nbsp;last rose 16/32 in price to yield 1.7795%, from 1.835% late on Friday. Monday was a U.S. market holiday. The dollar index fell 0.04%, with the euro&nbsp;down 0.04% to $1.109.Sterling&nbsp;was last trading at $1.3051, up 0.32% on the day. The Australian dollar&nbsp;dropped on the flu worries since the country attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays.

Some investors were relieved that U.S. President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. They agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said.

A tariff war between China and the United States was blamed for the economic growth slowdown of last year. U.S. gold futures&nbsp;fell 0.22% to $1,555.40 an ounce. Oil prices were mixed on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle. U.S. crude&nbsp;rose 0.17% to $58.64 per barrel and Brent was last at $64.98, down 0.34% on the day.

&nbsp;

Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as financial markets reacted to mounting concern about a new strain of the flu-like virus in China.

Risk assets took a hit across the globe on Tuesday while the Japanese yen and U.S. Treasury prices gained as financial markets reacted to mounting concern about a new strain of the flu-like virus in China. The World Health Organization called a meeting for Wednesday to consider declaring a global health emergency while authorities in China confirmed the coronavirus could spread through human contact. The mayor of Wuhan, where the virus may have originated, confirmed a sixth virus-related death. Investors are worried about the threat of contagion as hundreds of millions travel for the Chinese Lunar New Year holidays, which peak over the coming weekend. Traders recalled the fallout from a Severe Acute Respiratory Syndrome (SARS) outbreak in 2002-2003 that killed about 800 people globally and which China initially covered up. Emerging market stocks lost 1.58%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.63% lower, while Japan's Nikkei lost 0.91%. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2.8%. The overnight chill in Asia carried over to European markets. Shares of luxury goods makers - which have large exposure to China - were among those declining the most. Also Read: Global Markets: Asian shares lower as investors book decade-end profits A U.S. index of airline stocks fell 2.3% and hotel and casino operators Las Vegas Sands Corp and Wynn Resorts Ltd, both of which have large operations in China, dropped over 4%. The virus outbreak "seems to be the biggest negative," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida. "We may see U.S. markets try to spit it out because it doesn't have that much of an impact on U.S. economy." [ Traders work on the floor at the New York Stock Exchange (Courtesy: Reuters) ] The Dow Jones Industrial Average fell 20.99 points, or 0.07%, to 29,327.11, the S&P 500 lost 1.13 points, or 0.03%, to 3,328.49 and the Nasdaq Composite added 1.12 points or 0.01%, to 9,390.06. The pan-European FTSEurofirst 300 index lost 0.16% and MSCI's gauge of stocks across the globe shed 0.29%. In other markets, U.S.- and German 10-year government bond yields touched a two week low while the safe-haven yen strengthened 0.23% versus the dollar at 109.95. "The fear is that it could be a SARS-type event, which was an economic issue," said Ellis Phifer, market strategist at Raymond James in Tennessee. "But this is all cautionary. The market is not panicking or anything." Benchmark 10-year notes last rose 16/32 in price to yield 1.7795%, from 1.835% late on Friday. Monday was a U.S. market holiday. The dollar index fell 0.04%, with the euro down 0.04% to $1.109.Sterling was last trading at $1.3051, up 0.32% on the day. The Australian dollar dropped on the flu worries since the country attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Some investors were relieved that U.S. President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. They agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said. A tariff war between China and the United States was blamed for the economic growth slowdown of last year. U.S. gold futures fell 0.22% to $1,555.40 an ounce. Oil prices were mixed on expectations that a well-supplied market would be able to absorb disruptions that have cut Libya's crude production to a trickle. U.S. crude rose 0.17% to $58.64 per barrel and Brent was last at $64.98, down 0.34% on the day.

Risk assets slip on Chinese virus anxiety

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays.

"It's an essential enough development that markets will monitor it on the risk radar as, if things turn critical, it could provide a massive blow to the airline industry and a knockout punch to local tourism," said Stephen Innes, Asia Pacific market strategist at AxiCorp.

<img alt="China Stock Market" data-entity-type="file" data-entity-uuid="2eb92339-9586-4c42-b886-0cf231f8a2da" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2832%29_2.jpg" /> 
[&nbsp;Investors look at computer screens showing stock information at a brokerage house in Shanghai (Courtesy: Reuters) ]

The mood swing saw MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1 per cent&nbsp;after a steady start. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2 per cent.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/world-stocks-hit-all-time-high-after-trump-tweets-close-to-china-deal-267973">World stocks hit all time high after Trump tweets 'close to China deal'</a>

Japan's Nikkei lost 0.8 per cent&nbsp;and Shanghai blue chips 1.5 per cent&nbsp;with airlines under pressure. The caution spread to E-Mini futures for the S&amp;P 500 which eased 0.4 per cent, while Eurostoxx&nbsp;50 futures lost 0.3 per cent.

Investors had already been guarded after the International Monetary Fund trimmed its global growth forecasts, mostly due to a surprisingly sharp slowdown in India and other emerging markets.

There had been some relief as U<a href="https://www.wionews.com/business-economy/oil-ends-higher-as-trade-deal-progresses-spurs-energy-demand-hopes-275526">S&nbsp;President Donald Trump</a> and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax.

The two agreed to hold off on a <a href="https://www.wionews.com/business-economy/wall-street-stocks-surge-after-us-china-trade-accord-274737">potential tariffs war</a> until the end of the year, a French diplomatic source said. Trump is due to deliver a speech at the World Economic Forum in Davos later on Tuesday, and trade and tariffs could be on the agenda.

In a tweet late on Monday, Trump said he would be bringing "additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!"

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
Heading to Davos, Switzerland, to meet with World and Business Leaders and bring Good Policy and additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1219424278216470528?ref_src=twsrc%5Etfw">January 21, 2020</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The Bank of Japan cited lessened trade risks when nudging up forecasts for economic growth after holding a policy meeting on Tuesday. As widely expected, the BOJ maintained its short-term interest rate target at -0.1 per cent&nbsp;and a pledge to guide 10-year government bond yields around 0 per cent, by a 7-2 vote.

Japan's yen picked up a bid on the safe-haven move and the dollar dipped to 109.92 from an early 110.17. It also gained on the euro, leaving the single currency flat on the dollar at $1.1092. Against a basket of currencies, the dollar was steady at 97.599, just off a four-week high of 97.729.

The Australia dollar took a knock from the flu worries since it attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Australia said it would step up the screening of some flights from Wuhan.

The outbreak was particularly badly timed as the tourism industry has been mauled already by bushfires sweeping the country. Spot gold edged up to $1,566.71 per ounce, and back toward a seven-year peak of $1,610.90 reached last week.

Oil prices hesitated, having earlier gained on the risk of supply disruption in Libya. Brent crude futures eased 31 cents to $64.89 a barrel, while US&nbsp;crude fell 5 cents to $58.49.

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets.

Asian shares took a sudden turn for the worse on Tuesday as mounting concerns about a new strain of coronavirus in China sent a ripple of risk aversion through markets. Safe-haven bonds and the yen edged higher as investors were reminded of the economic damage done by the SARS virus in 2003, particularly given the threat of contagion as hundreds of millions travel for the Lunar New Year holidays. "It's an essential enough development that markets will monitor it on the risk radar as, if things turn critical, it could provide a massive blow to the airline industry and a knockout punch to local tourism," said Stephen Innes, Asia Pacific market strategist at AxiCorp. [ Investors look at computer screens showing stock information at a brokerage house in Shanghai (Courtesy: Reuters) ] The mood swing saw MSCI's broadest index of Asia-Pacific shares outside Japan slipped 1 per cent after a steady start. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2 per cent. Also Read: World stocks hit all time high after Trump tweets 'close to China deal' Japan's Nikkei lost 0.8 per cent and Shanghai blue chips 1.5 per cent with airlines under pressure. The caution spread to E-Mini futures for the S&P 500 which eased 0.4 per cent, while Eurostoxx 50 futures lost 0.3 per cent. Investors had already been guarded after the International Monetary Fund trimmed its global growth forecasts, mostly due to a surprisingly sharp slowdown in India and other emerging markets. There had been some relief as US President Donald Trump and French President Emmanuel Macron seemed to have struck a truce over a proposed digital tax. The two agreed to hold off on a potential tariffs war until the end of the year, a French diplomatic source said. Trump is due to deliver a speech at the World Economic Forum in Davos later on Tuesday, and trade and tariffs could be on the agenda. In a tweet late on Monday, Trump said he would be bringing "additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!!" Heading to Davos, Switzerland, to meet with World and Business Leaders and bring Good Policy and additional Hundreds of Billions of Dollars back to the United States of America! We are now NUMBER ONE in the Universe, by FAR!! — Donald J. Trump (@realDonaldTrump) January 21, 2020 × The Bank of Japan cited lessened trade risks when nudging up forecasts for economic growth after holding a policy meeting on Tuesday. As widely expected, the BOJ maintained its short-term interest rate target at -0.1 per cent and a pledge to guide 10-year government bond yields around 0 per cent, by a 7-2 vote. Japan's yen picked up a bid on the safe-haven move and the dollar dipped to 109.92 from an early 110.17. It also gained on the euro, leaving the single currency flat on the dollar at $1.1092. Against a basket of currencies, the dollar was steady at 97.599, just off a four-week high of 97.729. The Australia dollar took a knock from the flu worries since it attracts large numbers of Chinese tourists, who tend to be big spenders over the Lunar New Year holidays. Australia said it would step up the screening of some flights from Wuhan. The outbreak was particularly badly timed as the tourism industry has been mauled already by bushfires sweeping the country. Spot gold edged up to $1,566.71 per ounce, and back toward a seven-year peak of $1,610.90 reached last week. Oil prices hesitated, having earlier gained on the risk of supply disruption in Libya. Brent crude futures eased 31 cents to $64.89 a barrel, while US crude fell 5 cents to $58.49.

Asian shares dip as China virus spreads

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China.

The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election.

"I have no deadline," Trump told reporters upon his arrival.

"In some ways I like the idea of waiting until after the election for the China deal."

Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions.

'Another turn lower'&nbsp;

"The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson.

"After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added.

As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever".

But Washington has since courted Chinese anger by expressing support for Hong Kong protesters.

Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records.

Wine and cheese&nbsp;

But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers.

Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon.

Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey.

On Tuesday, France vowed a "strong" response to any tariffs.

Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020.

Key figures around 1645 GMT&nbsp;

London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close)

Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close)

Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close)

EURO STOXX 50: DOWN 0.4 percent at 3,610.99

New York - Dow: DOWN 1.4 percent at 27,392.08

Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close)

Shanghai - Composite: UP 0.3 percent at 2,884.70 (close)

Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT

Pound/dollar: UP at $1.3000 from $1.2939

Euro/pound: DOWN at 85.25 pence from 85.63

Dollar/yen: DOWN at 108.56 from 108.98 yen

Brent North Sea crude: UP 0.2 percent at $61.03 per barrel

West Texas Intermediate: UP 0.2 percent at $56.08&nbsp;

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through.

Global equities mostly retreated Tuesday after US President Donald Trump warned there was no deadline for doing a trade deal with China. The announcement added to trade uncertainty already stoked by the United States reimposing tariffs on Argentina and Brazil, threatening France with steep levies -- and warning China of possible new measures if ongoing talks fall through. Trump, in Britain for a NATO summit, warned that efforts to resolve a trade dispute could wait until after next November's US election. "I have no deadline," Trump told reporters upon his arrival. "In some ways I like the idea of waiting until after the election for the China deal." Trump's trade war with China and on-again-off-again attempts to reach a deal have destabilised markets and stoked geopolitical tensions. 'Another turn lower' "The chances of a deal by December 15 just took another turn lower," said Markets.com analyst Neil Wilson. "After weeks of making generally positive noises on a deal being very close, there is a real sense now that a deal is not so very near at all and markets need to reprice," Wilson added. As recently as last week Trump boasted that he was in the "final throes" of negotiating "one of the most important deals in trade ever". But Washington has since courted Chinese anger by expressing support for Hong Kong protesters. Optimism that Beijing and Washington will eventually hammer out a partial agreement as part of a wider deal had supported equities for weeks, helping Wall Street to set numerous records. Wine and cheese But investor sentiment was dealt a blow on Monday when Trump said he would reinstate tariffs on steel and aluminium from Argentina and Brazil whom he accused of manipulating their currencies and hurting US farmers. Later, officials warned they would also hit France with up to 100 per cent levies on $2.4 billion in goods, saying a French digital tax was discriminatory against US tech firms such as Google, Apple and Amazon. Sparkling wine, yoghurt and Roquefort cheese could be affected as soon as next month, while US Trade Representative Robert Lighthizer warned his office was also considering similar moves against Austria, Italy, and Turkey. On Tuesday, France vowed a "strong" response to any tariffs. Oil prices were firmer ahead of a key meeting of OPEC and other major producers, which is expected to see them maintain output cuts into June, with speculation they could go on until the end of 2020. Key figures around 1645 GMT London - FTSE 100: DOWN 1.8 percent at 7,158.76 points (close) Frankfurt - DAX 30: UP 0.2 percent at 12,989.29 (close) Paris - CAC 40: DOWN 1.0 percent at 5,727.22 (close) EURO STOXX 50: DOWN 0.4 percent at 3,610.99 New York - Dow: DOWN 1.4 percent at 27,392.08 Tokyo - Nikkei 225: DOWN 0.6 percent at 23,379.81 (close) Hong Kong - Hang Seng: DOWN 0.2 percent at 26,391.30 (close) Shanghai - Composite: UP 0.3 percent at 2,884.70 (close) Euro/dollar: UP at $1.1085 from $1.1078 at 2145 GMT Pound/dollar: UP at $1.3000 from $1.2939 Euro/pound: DOWN at 85.25 pence from 85.63 Dollar/yen: DOWN at 108.56 from 108.98 yen Brent North Sea crude: UP 0.2 percent at $61.03 per barrel West Texas Intermediate: UP 0.2 percent at $56.08

Global stocks rattled after Donald Trump says no 'deadline' on US-China trade deal