Stock markets tread water as investors eye US-China progress

LONDON: Global stock markets moved mostly sideways Thursday as optimism about China and the United States reaching a trade agreement was counteracted by nervous investors taking profits, dealers said.

Investors in British assets were cautious as they weighed the chances of Britain crashing out of the EU without a deal next week, with both the pound and the London stock market posting losses.

High-level talks between the world's top two economies resumed Wednesday in Washington, with reports saying they are edging towards an agreement to bring the curtain down on a long-running row that helped batter markets last year.

Bloomberg News said the deal they are working on would give China until 2025 to meet pledges on purchases and to let US firms wholly own their businesses in the country.

It said the aim was to get everything in place for presidents Donald Trump and Xi Jinping to sign off on a trade deal.

- 'Not there' -

White House economic adviser Larry Kudlow said the talks were "making good headway" but added: "We're not there and we hope this week to get closer."

The Bloomberg report follows an article in the Financial Times saying both sides were closing in on an agreement.

"Trade negotiations between China and the US appear to be gaining steam," said Oanda analyst Edward Moya.

"Both sides appear to be ironing the final details, and if we do see a final summit set up for President Trump and Xi, risk assets may accelerate higher."

David Madden, a market analyst at CMC Markets UK, noted that Kudlow had flagged movement on intellectual property theft and hacking, which are key bugbears of the White House.

"These issues have been a major point of contention for the US, and the fact that they are being discussed indicates that Beijing is serious about reaching a deal," he added.

Global stocks have enjoyed a stellar year so far thanks to confidence in a deal being reached.

On Thursday they gave a mixed picture with London and Paris lower at the close, while Frankfurt was up, shrugging off weak German industrial orders data.

Wall Street was higher approaching midday in New York, having opened flat.

- More Brexit talks in UK -

In London, the government redoubled its efforts Thursday to win over the main opposition party in a last-gasp bid to avoid a chaotic exit from the European Union next week.

The latest round of cross-party talks came after lawmakers tried to safeguard against a doomsday ending to the 46-year partnership by fast-tracking a bill Wednesday night seeking to delay Brexit.

The premier has already said she will seek a second "short" delay at an EU summit on April 10.

Parliament remains divided with hardliners fearing a "soft" divorce will leave Britain still linked to the bloc.

- Key figures around 1540 GMT -

London - FTSE 100: DOWN 0.2 percent at 7,401.94 points (close)

Frankfurt - DAX 30: UP 0.3 percent at 11,988.01 (close)

Paris - CAC 40: DOWN 0.1 percent at 5,463.80 (close)

EURO STOXX 50: UP 0.2 percent at 3,441.93

New York - Dow: UP 0.6 percent at 26,362.67

Tokyo - Nikkei 225: UP 0.1 percent at 21,724.95 (close)

Hong Kong - Hang Seng: DOWN 0.2 percent at 29,936.32 (close)

Shanghai - Composite: UP 0.9 percent at 3,246.57 (close)

Pound/dollar: DOWN at $1.3064 from $1.3158 at 2100 GMT on Wednesday

Euro/pound: UP at 85.85 pence from 85.35 pence

Euro/dollar: DOWN at $1.1218 from $1.1233

Dollar/yen: UP at 111.56 yen from 111.49 yen

Oil - Brent Crude: UP 20 cents at $69.51 per barrel

Oil - West Texas Intermediate: UP 2 cent at $62.48