However, U.K. Brexit minister Dominic Raab on Tuesday tweeted that he was “confident” a deal could be struck, and that Brexit negotiations would be “continuous” from now on, though they were in the final stage.
In another potential issue for equities, two men close to President Trump faced significant legal issues. Former Trump campaign chairman Paul Manafort on Tuesday was found guilty on eight charges, including tax fraud, as the president’s former lawyer Michael Cohen said he violated campaign-finance law at Trump’s direction. While the issue has no direct economic impact, it could increase the levels of political uncertainty and further cloud the outlook for trade policy.
What are market analysts saying?
“Whilst investors have been relatively optimistic that a positive outcome will be secured from the meeting, neither the U.S. or China are optimistic that the talks can succeed, where three earlier rounds have failed,” said Jasper Lawler, head of research at the London Capital Group. “With expectations sitting so low, just the slightest hint of good news could be enough to ignite risk appetite.”
What stocks are in focus?
Headlam Group PLC /zigman2/quotes/206265240/delayed UK:HEAD +0.79% reported a drop in its first-half results, and said its full-year earnings would be at the low end of analyst expectations due to difficult market conditions. The stock ended 0.7% higher.