FRANKFURT, Germany (AP) — European stock markets drifted higher Monday while Asia was mixed after the U.S. and China escalated their war over trade and technology with new tariff increases.
U.S. markets were closed for the Labor Day holiday, draining some of the energy from global trading. Benchmarks in London, Paris and Shanghai advanced. Tokyo and Hong Kong declined.
Markets reacted less strongly to the weekend tariff hikes on billions of dollars of goods than to previous increases. Investors are hoping for progress in talks this month, but analysts warn the fight over trade and technology is unlikely to be quickly resolved.
“The short-lived truce will probably provide limited relief,” said Zhu Huani of Mizuho Bank in a report. “Businesses have become increasingly uncertain about future prospects, evidenced by the pullback in business investment amidst growing concerns on growth.”
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