Ag AFP
WASHINGTON/ London: U.S. President Donald Trump on Wednesday signaled a new direction in U.S. and China's trade talks, saying the current track appeared "too hard to get done" and that any possible deal needed "a different structure.
"In an early morning post on Twitter, Trump cited difficulties such as verification but gave no other details about what he or his administration was looking for amid ongoing negotiations.
Representatives for the White House did not immediately respond to a request for more details about the president´s statement.
"Our trade deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion," Trump wrote in his post.
Trump´s statement comes amid ongoing negotiations between the world´s two largest economies after potential tariffs on both sides raised fears of a trade war even as some tensions have eased over signs of some progress.
On Tuesday, Trump told reporters that he was not pleased with recent trade talks between the two countries but that they "were a start."
Meanwhile global stocks sank on Wednesday after US President Donald Trump said he was not satisfied with talks that are aimed at averting a trade war with China.
Equities were also dented by poor eurozone economic data, and as Trump cast doubt on a planned summit with North Korean leader Kim Jong Un.
"Trump (is) continuing to drive uncertainty over global trade," said analyst Joshua Mahony at trading firm IG.
"European markets are following their Asian counterparts lower, as a pessimistic tone from Trump is compounded by downbeat economic data," he added.
Markets had surged Monday after US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from imposing threatened tariffs on billions of dollars of goods, and continue talks on a variety of trade issues.
However, Trump has declared that he was "not satisfied" with the status of the talks, fuelling worries that the world´s top two economies could still slug out an economically painful trade war.
Investors sought to dump risky equities as they fretted over the news, as Trump also warned that there was "a very substantial chance it won´t work out" when asked about next month´s landmark talks with Kim.
He added the summit could be delayed or even called off if the North did not agree to give up its nuclear weapons.
"Markets traded lower ... as risk sentiment was dealt a blow by Trump who said that he was not pleased with how the talks with China went and that he was not satisfied," wrote FX Pro analysts.
"He also said that there was a substantial chance that the summit with North Korea in June would not work out.
"This led to a fall in US indices ... and a rebound higher in the dollar."
In late morning European trade, Frankfurt sank 1.5 percent and Paris shipped 1.2 percent, while London lost 0.8 percent on news also of slowing UK annual inflation.
And the euro briefly sank to $1.1699 -- the lowest level since mid-November.
Adding to nerves, a key survey showed Wednesday that the pace of growth of eurozone business activity continued to slow in May, as companies became less optimistic about the state of the economy in Europe.
Data monitoring company IHS Markit also flagged strong slowdowns in France and Germany, though employment growth in the 19-country single currency bloc remained robust.
The purchasing managers´ index (PMI) by IHS Markit fell to 54.1 in May, which was lower than forecast by analysts. A figure over 50 indicates the economy is expanding.
"A whole raft of eurozone PMI surveys have continued to shed a worrying picture of economic progress within the region," noted analyst Mahony.
Later on, dealers will digest minutes from the US Federal Reserve´s most recent policy meeting for some clarity on plans for raising interest rates this year.
Elsewhere on Wednesday, Turkey´s embattled lira lost over 3.5 percent in value to hit new historic dollar lows, as markets watched to see if the nation´s central bank will take emergency action to buttress the currency.