Markets slipped on Thursday, reversing some of the gains from a heady two-day rally, after officials in China said they were not holding talks with the United States about easing trade tensions between the superpowers.
Stocks in Asia were mixed, while benchmarks in Europe turned mostly lower in early trading. Futures for the S&P 500 fell about half a percent, suggesting that stocks would open lower in New York. The index has seesawed this week as investors reacted to comments about trade from President Trump, with a sharp sell-off on Monday followed by two days of sizable gains.
“There are currently no economic and trade negotiations between China and the United States,” He Yadong, a spokesperson for China’s Ministry of Commerce, said on Thursday. “Any claims about progress in China-U.S. economic and trade negotiations are baseless rumors without factual evidence.”
A spokesman for China’s Ministry of Foreign Affairs, Guo Jiakun, reiterated China’s stance, which is that the tariff war was started by the United States and that China would only engage in talks under certain conditions. “China’s attitude is consistent and clear: If you want to fight, we will fight to the end; if you want to talk, the door is open,” he said.
The day before, U.S. Treasury Secretary Scott Bessent dismissed speculation that Mr. Trump was considering unilaterally lowering tariffs on China and emphasized that any moves to de-escalate trade tensions would need to be mutual. “I don’t think either side believes that the current tariff levels are sustainable,” he said.
In other developments on Thursday:
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The U.S. dollar fell against several major currencies, including the euro (down 0.5 percent), the British pound (0.3 percent) and the Japanese yen (0.6 percent).
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The yield on 10-year Treasury bonds, which move inversely to prices, fell three basis points, to 4.35 percent.
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Oil futures recovered some ground, with Brent crude up slightly, to $66.40 a barrel.
Siyi Zhao contributed research.
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