Global stocks mostly down on trade war, Brexit worries

NEW YORK European and US stocks took a beating

Tuesday on dimming hopes for a US-China trade accord and as talks between

Britain and Europe over Brexit teetered on the brink of collapse.

US markets were in the red the entire session after the Commerce

Department late Monday announced new restrictions on 28 Chinese entities over

human rights violations, drawing an angry rebuttal from Beijing.

Stocks took another drop during the afternoon after the US State

Department announced new visa restrictions Chinese government and Communist

Party officials alleged to have persecuted Muslims.

Besides the new US sanctions, there also were fresh reports citing unnamed

Trump administration officials saying the White House is mulling new measures

to curtail US investment in China.

It's not a good sign to see these type of measures being put in place

just before the trade negotiation resumes, said Tom Cahill of Ventura Wealth

Management.

The market is skeptical that anything good can come out of the

negotiations this week.

Major US indices slid more than one percent, with the S and P 500 skidding 1.6

percent to 2,893.06.

European bourses also tumbled along with the British pound as a no-deal

Brexit again seemed more likely following the latest clash between EU and

British leaders on the divorce agreement.

Brexit talks teetering

In an unusual move, Downing Street provided a readout of a meeting between

British Prime Minister Boris Johnson and German chancellor Angela Merkel in

which Merkel allegedly demanded a rewrite of Britain's approach to the long-

vexing Irish border problem that made a compromise essentially impossible.

The Downing Street official quoted Merkel as saying a deal now looked

overwhelmingly unlikely and added that the Brexit talks were close to

breaking down.

Merkel's office declined to comment on confidential discussions, but

European Council President Donald Tusk addressed Johnson caustically on

Twitter.

What's at stake is not winning some stupid blame game, Tusk said.

At stake is the future of Europe and the UK as well as the security and

interests of our people. You don't want a deal, you don't want an extension,

you don't want to revoke, quo vadis?

The impasse weighed on the pound, which was at $1.2213 and could fall

further, analysts warned.

This public antagonism is a sign that negotiations are not going well,

said Kathy Lien of BK Asset Management. Unless Johnson proceeds with a

request to delay Brexit, the next stop for GBP/USD could be 1.20.

Key figures around 2040 GMT

New York Dow: DOWN 1.2 percent at 26,164.04 (close)

New York S and P 500: DOWN 1.6 percent at 2,893.06 (close)

New York Nasdaq: DOWN 1.7 percent at 7,823.78 (close)

London FTSE 100: DOWN 0.8 percent at 7,143.15 (close)

Paris CAC 40: DOWN 1.2 percent at 5,456.62 (close)

Frankfurt DAX 30: DOWN 1.1 percent at 11,970.20 (close)

EURO STOXX 50: DOWN 1.1 percent at 3,432.76 (close)

Tokyo Nikkei 225: UP 1.0 percent at 21,587.78 (close)

Hong Kong Hang Seng: UP 0.3 percent at 25,893.40 (close)

Shanghai Composite: UP 0.3 percent at 2,913.67 (close)

Brent North Sea crude: DOWN 0.2 percent at $58.24 per barrel

West Texas Intermediate: DOWN 0.2 percent at $52.63 per barrel

Pound/dollar: DOWN at $1.2213 from $1.2293 at 2100 GMT

Euro/pound: UP at 89.69 pence from 89.25 pence

Euro/dollar: DOWN at $1.0955 from $1.0971

Dollar/yen: DOWN at 107.07 yen from 107.26 yen

Source: Bangladesh Sangbad Sangstha (BSS)