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BEIJING  — China said the United States needs to correct its "wrong actions" for trade talks to continue after it blacklisted Huawei, a blow that has rippled through global supply chains and battered tech shares as investors fear a technology cold war.

Japanese conglomerate Panasonic Corp. joined a growing list of global companies which have said they are disengaging from Huawei Technologies Co. Ltd., the world's second-largest seller of smartphones and the largest telecom-gear maker, saying it had stopped shipments of some components.

Its move came a day after British chip designer ARM said it had halted relations with Huawei to comply with the US supply blockade, potentially crippling the Chinese firm's ability to make new chips for smartphones. Huawei uses ARM blueprints to design the processors that power its smartphones.

"If the United States wants to continue trade talks, they should show sincerity and correct their wrong actions. Negotiations can only continue on the basis of equality and mutual respect," Chinese Commerce Ministry spokesman Gao Feng told a weekly briefing.

"We will closely monitor relevant developments and prepare necessary responses," he said, without elaborating.

The United States has accused Huawei of working for the Chinese government and activities contrary to national security, accusations Huawei denies. The Trump administration softened its stance slightly this week by granting the firm a licence to buy US goods until August 19 to minimise disruption for customers.

Japan's Toshiba Corp. said it had resumed some shipments to Huawei after temporarily suspending shipments to check whether they included US-made components.

"What we are witnessing is a potential reconfiguration of global trade as it has stood since World War II... investors should begin thinking about how sensitive their portfolios are to global supply chain-exposed shocks," Saxo Bank's head of equity strategy, Peter Garnry, wrote in a note titled: "Are you ready for a cold war in tech?" 

Huawei founder Ren Zhengfei told Chinese financial magazine Caixin on Thursday that he did not see ARM's decision to suspend business with Huawei as having an impact on the company.

He said that Huawei had a long-term agreement with ARM and speculated that the British firm had made such a move because its parent, Japan's SoftBank Group Corp., was waiting for US approval for the merger of Sprint Corp., which it owns, and T-Mobile US Inc.

Industry experts have questioned Huawei's claims minimising the impact of moves that makes it hard for the company to do business with US firms.

No further trade talks between top Chinese and US negotiators have been scheduled since the last round ended on May 10, the same day US President Donald Trump sharply increased tariffs on $200 billion worth of Chinese goods and took steps to levy duties on all remaining Chinese imports.

Speaking at a separate briefing in Beijing, a spokesman for China's foreign ministry reiterated that China's door was always open for talks, but that the situation with Huawei and other Chinese tech firms targeted by the United States made this difficult.

"Relevant US actions obviously do not create a good atmosphere or environment for consultations," spokesman Lu Kang said.

China has retaliated with its own levies on US imports, but it was Washington's subsequent move against Huawei that took the trade war into a new phase, stoking fears about risks to global growth and knocking financial markets.

NEW YORK — Global equity markets slid on Wednesday as investors sought safety in bonds, the Japanese yen and Swiss franc amid renewed worries over the US-China trade standoff after reports the United States has another Chinese tech firm in its sights.

Relief over Washington’s temporary relaxation of curbs against China’s Huawei Technologies Co. Ltd. evaporated after reports that the White House is considering further sanctions on Chinese video surveillance firm Hikvision.

Fears of another blacklisting reinforced worries that US President Donald Trump is looking beyond sealing a trade deal with China to a potentially bigger battle aimed at curbing Beijing’s technology ambitions.

The yen and Swiss franc gained against the dollar and the price of the 10-year US Treasury note rose, but the decline in US and European equity markets was subdued.

“The market is still expecting a resolution or at least a modification of some of the worrying aspects out there about the trade relationship,” said John Vail, chief global strategist at Nikko Asset Management in New York.

Major central banks around the world still have accommodative monetary policies, which favours equities, he said.

“Clearly the situation is more fraught than it has been in the past,” Vail said. “But for the time being we’re still positive on equity markets globally.”

Asia-Pacific shares outside Japan closed 0.03 per cent higher, while Japan’s Nikkei rose 0.05 per cent.

The Chinese markets, which have endured a volatile few months, were on the backfoot. The Shanghai Composite Index closed down 0.5 per cent.

MSCI’s gauge of stock performance in 47 countries across the globe shed 0.20 per cent and the FTSEurofirst 300 index of leading Europeans shares fell 0.13 per cent.

On Wall Street, the Dow Jones Industrial Average fell 70.84 points, or 0.27 per cent, to 25,806.49. The S&P 500 lost 6.85 points, or 0.24 per cent, to 2,857.51 and the Nasdaq Composite dropped 20.32 points, or 0.26 per cent, to 7,765.40.

London’s FTSE 100 blue chips bucked the trend, rising 0.07 per cent as sterling slumped to lows last seen in early January amid renewed worries about the country’s messy exit from the European Union.

The pound fell 0.43 per cent to $1.2650, its lowest since early January, after Prime Minister Theresa May’s final gambit to get a divorce deal approved failed dramatically.

The dollar held near a one-month high ahead of the release of Federal Reserve meeting minutes, which may provide more clues on why the US central bank stood pat on interest rates earlier this month.

Investors sought havens in the Swiss franc, Japanese yen and German government bonds. 

The yen strengthened away from two-week lows against the dollar, rising 0.17 per cent to 110.30 yen, while the Swiss franc was higher against the euro and the dollar. The euro fell 0.04 per cent against the dollar to $1.1154.

In commodities, US West Texas Intermediate crude futures were down $1.25 at $61.88 per barrel after American Petroleum Institute data showed that US crude stockpiles rose unexpectedly last week.

Oil was also pressured by Saudi Arabia reiterating that it would aim to keep the market balanced and try to reduce tensions in the Middle East.

Brent crude futures lost $1.01 to $71.17 per barrel.

Benchmark 10-year notes last rose 10/32 in price to yield 2.3909 per cent. 

NEW YORK/SHANGHAI — The United States has temporarily eased trade restrictions on China's Huawei to minimise disruption for its customers, a move the founder of the world's largest telecoms equipment maker said meant little because it was already prepared for US action.

The US Commerce Department blocked Huawei Technologies Co. Ltd. from buying US goods last week, saying the firm was involved in activities contrary to national security.

The move came amid an escalating dispute over trade practices between the United States and China. The two countries increased import tariffs on each other's goods over the past two weeks after US President Donald Trump said China had reneged on earlier commitments made during months of negotiations.

On Monday, the Commerce Department granted Huawei a licence buy US goods until August 19 to maintain existing telecoms networks and provide software updates to Huawei smartphones.

The Chinese company is still prohibited from buying American-made hardware and software to make new products without further, hard-to-obtain licences.

The reprieve is intended to give telecom operators that rely on Huawei equipment time to make other arrangements, US Secretary of Commerce Wilbur Ross said in a statement on Monday.

"In short, this licence will allow operations to continue for existing Huawei mobile phone users and rural broadband networks," Ross said.

Huawei founder Ren Zhengfei on Tuesday said in a series of interviews with Chinese state media that the reprieve bore little meaning for the telecom gear maker as it had been making preparations for such a scenario.

"The US government's actions at the moment underestimate our capabilities," Ren said in an interview with CCTV, according to a transcript published by the Chinese state broadcaster.

Pervasive 

The temporary licence suggests changes to Huawei's supply chain may have immediate, far-reaching and unintended consequences for its customers.

"The goal seems to be to prevent Internet, computer and cell phone systems from crashing," said Washington lawyer Kevin Wolf, a former Commerce Department official. "This is not a capitulation. This is housekeeping."

The reprieve also appeared aimed at telecom providers in countries where Huawei equipment is pervasive, said Washington trade lawyer Douglas Jacobson.

The Commerce Department said it will evaluate whether to extend the licence period beyond 90 days.

Google suspension 

Huawei is currently on the receiving end of a US government accusation that it engaged in bank fraud to obtain embargoed US goods and services in Iran and move money via the international banking system. Huawei has pleaded not guilty.

Adding to its US troubles on Thursday, the US Commerce Department placed Huawei and 68 entities on an export blacklist, making it nearly impossible for those listed to purchase goods made in the United States.

On Sunday, Reuters reported citing a person familiar with the matter that Alphabet Inc.'s Google suspended business with Huawei that requires the transfer of technical service, hardware and software except what is publicly available via open-source licensing.

Monday's temporary licence is likely to allow companies such as Google to continue providing service and support, including software updates or patches, to Huawei smartphones that were available to the public on or before May 16.

Google did not respond to a request for comment on the licence.

The licence also allows Huawei to engage in the development of standards for fifth-generation (5G) telecom networks.

Apple praise 

Ren put up a strong front on Tuesday, reiterating claims that the restrictions will not hurt Huawei's prospects and that no other company will be able to catch up with Huawei in 5G technology in the next two to three years. 

China was nevertheless still "far behind" the United States in technology, he said.

Chip experts have called out Huawei on its claims that it could ensure a steady supply chain without US help, saying the technology the Chinese telecoms network gear maker buys from American companies would be "hard to replace".

Nearly 16 per cent of Huawei's expenditure on components last year went to US firms including Qualcomm Inc., Intel Corp. and Micron Technology Inc., analysts said.

Ren said Huawei was at odds with the US government, not US firms, and in a comment that trended on Chinese social media, he praised Apple Inc.'s iPhones, saying that he gifted the American firm's devices to family members.

"Apple has a good business ecosystem... We cannot think narrow-mindedly that loving Huawei equals loving its phones."

US firms could lose up to $56.3 billion in export sales over five years from stringent export controls on technologies involving Huawei or otherwise, the Information Technology & Innovation Foundation said in a report. Missed opportunities threatened as many as 74,000 jobs, the foundation said.

John Neuffer, president of the Semiconductor Industry Association which represents US chipmakers and designers, called on the government to ease Huawei restrictions further. 

SAN FRANCISCO — US Internet giant Google, whose Android mobile operating system powers most of the world’s smartphones, said it was beginning to cut ties with China’s Huawei.

The move could have dramatic implications for Huawei smartphone users, as the telecoms giant will no longer have access to Google’s proprietary services — which include the Gmail and Google Maps apps — a source close to the matter told AFP.

Reports also emerged on Monday that several US chipmakers providing vital hardware for Huawei’s smartphones have stopped supplying the Chinese firm.

In the midst of a trade war with Beijing, President Donald Trump has barred US companies from engaging in telecommunications trade with foreign companies said to threaten American national security.

The measure targets Huawei, the world’s second-biggest smartphone maker, which has been listed by the US Commerce Department among firms that American companies can only trade with if authorities grant permission.

The ban includes technology sharing. Google, like all tech companies, collaborates directly with smartphone makers to ensure its systems are compatible with their devices.

“We are complying with the order and reviewing the implications,” a Google spokesperson told AFP.

“We assure you while we are complying with all US gov’t requirements, services like Google Play & security from Google Play Protect will keep functioning on your existing Huawei device,” Google’s official @Android account Tweeted.

Due to the ban, Google will have to halt business activities with Huawei that involve direct transfer of hardware, software and technical services that are not publicly available.

That means Huawei will only be able to use the open source version of Android.

It will need to manually access any updates or software patches from Android Open Source Project, and also distribute the updates to users itself, a source told AFP. 

In a statement, Huawei said it would “continue to provide security updates and after-sales services” to all existing smartphones and tablets globally, including those not yet sold.

A person familiar with the matter who requested anonymity told Bloomberg News that Huawei will be unable to offer Google’s proprietary apps and services in the future. 

China’s foreign ministry said it was actively following the situation.

“At the same time, the Chinese side supports Chinese enterprises in taking up legal weapons and defending their legitimate rights,” said spokesman Lu Kang.

5G leader 

Huawei is a rapidly expanding leader in 5G technology, and currently has the most advanced and cheapest 5G capacities in the world.

Its smartphones outsold Apple’s iPhones in the first quarter of this year, seizing the California company’s second-place spot in a tightening smartphone market dominated by Samsung.

But the Chinese firm remains dependent on foreign suppliers.

It buys about $67 billion worth of components each year, including about $11 billion from US suppliers, according to The Nikkei business daily.

US chipmakers including Intel, Qualcomm and Broadcom have informed workers that they will stop supplying Huawei until further notice, Bloomberg said on Monday, citing people familiar with their actions. 

Huawei “is heavily dependent on US semiconductor products and would be seriously crippled without supply of key US components”, said Ryan Koontz, a Rosenblatt Securities analyst, although the Chinese firm is believed to have stockpiles in place.

The ban “may cause China to delay its 5G network build until the ban is lifted, having an impact on many global component suppliers”, he added.

The companies themselves did not comment. 

Huawei is the target of an intense campaign by Washington, which has been trying to persuade allies not to allow China a role in building next-generation 5G mobile networks.

Super-fast networking 5G, the fifth-generation successor to today’s decade-old 4G technology which is struggling to keep pace with global broadband demand, promises radically quicker transfers of data.

JEDDAH, Saudi Arabia — Oil supplies were sufficient and stockpiles were still rising despite massive output drops from Iran and Venezuela, said OPEC kingpin Saudi Arabia and key producer UAE on Sunday, as oil exporters met in Jeddah. 

Producer nations gathered to discuss how to stabilise a volatile oil market amid rising US-Iran tensions in the Gulf, which threaten to disrupt global supply.

But "we see that [oil] inventories are rising and supplies are plenty," Saudi Energy Minister Khalid Al Falih told reporters at the start the meeting.

"None of us wants to see the [oil] stocks swell again," he added, with reference to a supply surplus that sent prices sharply lower in the second half of last year.

"We have to be cautious," Falih said.

The UAE's energy minister said there was no need to relax a deal by the OPEC+ group of oil exporting countries to cut output by 1.2 million barrels per day to support prices.

"We have seen inventory building. I don't think it makes sense" to alter the existing deal, said Suheil Al Mazrouei.

The meeting comes days after sabotage attacks against tankers in highly sensitive Gulf waters and the bombing of a Saudi pipeline — the latter claimed by Iran-aligned Yemeni rebels.

But Falih reiterated on Sunday that the kingdom's oil installations were well protected. 

"We have strong [oil] industry security," he told reporters.

"Everybody is vulnerable to extreme acts of sabotage."

The meeting also comes as the full impact of reinstated US sanctions against Tehran kick in, slashing the Islamic republic's crude exports.

 Iran exports tumble 

But Iran — which did not send a representative to the meeting — was still expected to dominate the one-day meeting of the OPEC+ group of oil producing nations.

The meeting is set to conclude by making recommendations for a key summit of oil producers in late June, to be attended by Iran.

Russian Energy Minister Alexander Novak said it was "premature" to talk about extending the deal, according to Interfax news agency.

Massive drops in exports by Iran and Venezuela come alongside output cuts of 1.2 million barrels per day implemented by the OPEC+ group since January.

The International Energy Agency (IEA) said earlier this month that global oil supply fell in April due to the effect of US sanctions on Iran and the OPEC+ production cuts.

The IEA said Iranian crude production fell in April to 2.6 million bpd.

Iran's output is already at its lowest level in over five years, but could tumble in May to levels not seen since the devastating 1980-1988 Iran-Iraq war.

Energy intelligence firm Kpler sees Iranian exports plunging from 1.4 million bpd in April to around half a million bpd in May — down from 2.5 million in normal circumstances.

Venezuela's output — also subject to US export sanctions — is also tumbling, down by over half since the third quarter of last year.

Kpler data shows OPEC+ members have kept to agreed production cuts.

But exporters fear a rush to raise production to plug the gap left by Iranian exports could backfire, triggering a new supply glut.

BASRA, Iraq/DUBAI — Exxon Mobil has evacuated all of its foreign staff from Iraq’s West Qurna One oilfield and is flying them out to Dubai, a senior Iraqi official and three other sources told Reuters on Saturday.

Production at the oilfield was not affected by the evacuation and work is continuing normally, overseen by Iraqi engineers, state-owned South Oil Company chief Ihsan Abdul Jabbar said, adding that production remains at 440,000 barrels per day (bpd).

“Exxon Mobil’s evacuation is a precautionary and temporary measure. We have no indication over any dangers, the situation is secure and very stable at the oilfield which is running at full capacity and producing 440,000 bpd,” he said.

“The foreign engineers will provide advice and perform their duties from the company’s Dubai offices and we have no concerns at all,” Jabbar said, adding that production is managed by Iraqi engineers and the foreign staff were there mainly as advisers.

The United States on Wednesday pulled non-emergency staff members from its embassy in the Iraqi capital Baghdad out of apparent concern about perceived threats from neighbouring Iran.

Exxon Mobil’s staff were evacuated in several phases late on Friday and early on Saturday, either straight to Dubai or to the main camp housing foreign oil company employees in Basra province.

Those in the camp were en route to the airport on Saturday morning, sources — including an employee at a security company contracted by Exxon, Iraqi oil officials, and a staff member of a foreign oil company — said.

“Last night, 28 employees were evacuated to the airport and the rest were sent to the camp. This morning they were evacuated to the airport and no [foreign] staff remain in the field,” said a private security company official who oversaw the evacuation.

Days of sabre rattling between Washington and Tehran have heightened tensions in the region amid concerns about a potential US-Iran conflict. 

Washington has increased economic sanctions and built up its military presence in the region, accusing Iran of threats to US troops and interests. Tehran has described those steps as “psychological warfare” and a “political game”.

Separately, Abdul Jabbar said that Iraq’s oil exports from its southern ports had reached 3.5 million bpd by Saturday.

LONDON — Stock markets rose on Thursday after recent volatility as investors weighed hopes for US-China trade talks against President Donald Trump's telecoms equipment ban that was seen as a kick against Beijing.

Trump has issued an executive order, citing national security grounds, that effectively bars Chinese giant Huawei from the US market.

Huawei was also added to a list that would make it much harder for the Chinese firm to access crucial US components, a move likely to ramp up tensions with Beijing as the two economic titans engage in a drawn-out trade war that threatens global business activity.

European stocks showed modest rises by the mid-afternoon, with Frankfurt's Dax index the standout, while on Wall Street the Dow was just over 100 points higher shortly after the opening bell.

 'Quite a couple of weeks' 

"It's been quite the couple of weeks on the trade war front," noted Craig Erlam, senior market analyst at Oanda trading group. 

"We've gone from a deal being close to done, to talks collapsing and tariffs imposed and now Trump seeking to alleviate market concerns."

The Trump administration has for months tried to persuade allies not to allow China a role in building next-generation 5G mobile networks, warning that doing so would result in restrictions on sharing of information with the United States.

The announcement comes after the US last week hiked tariffs on $200 billion of Chinese goods, to which Beijing retaliated in kind, fanning fears their the trade war — which seemed all but over just weeks ago — could instead worsen.

In Hong Kong on Thursday, the main stocks index ended flat, although ZTE — another Chinese telecoms equipment provider — shed more than 6 per cent. Shanghai closed 0.6 per cent higher.

On foreign exchange markets, the dollar recovered some losses triggered by speculation that the Federal Reserve (Fed) could cut US interest rates to fend off the effects of the trade war and slowing economic growth.

Just months ago, some commentators had forecast up to three US rate hikes this year.

"Depending on how long this standoff with China lasts, that impacts growth for longer and might force the Fed's hand," Esty Dwek, at Natixis Investment Managers, told Bloomberg TV.

"I wouldn't expect any big change in the short term, but the possibility of a cut much later in the year has risen."

UniHouse, a British education and development consultancy company operating worldwide with offices based in Amman, has been working with major international oil companies in Iraq to encourage employee education and skills development in the oil & gas sector.

In continued support for the Iraqi capacity building of the Iraqi Ministry of Oil, a senior delegation from the ministry has visited UniHouse’s Amman office to discuss the execution of current programmes for training and capacity building. Mr. Khalid Hamzah Abbas, Assistant Director-General for Licensing and Social Benefits, Mr. Jawad Kadhim Al-Hilfi, Head of Administrative Division, and Mr. Ismael Abdulkareem Mohammed, Head of Contracts and Procurement Division have discussed current and future programs with UniHouse’s academic team in the Middle East for technical training and scholarship management services. Basra Oil Company (BOC) is the employer of BP, China National Petroleum Corporation (CNPC) and State Organization for Oil Marketing. An Integrated Training Center with City and Guilds accreditation, in addition to the UK academic programme, were the main key development areas of discussions.

Further development and encouragement of employer-sponsored education programs has the potential to enhance educational opportunities for local professionals, and further develop positive relationships between corporations and the local community.

European shares gained on Tuesday, recovering most of the previous session's losses, as optimistic comments from Washington and Beijing helped soothed investors' fears about the top two economies' intensifying trade spat.

US President Donald Trump said he had an "extraordinary" relationship with Chinese President Xi Jinping and trade talks had not yet collapsed.

Earlier in the day, China said it agreed to continue talks on trade.
The pan-European STOXX 600 index climbed 1 per cent, lifting off Monday's two-month low which came after China slapped retaliatory tariffs on US goods, spurring investors into scaling back risky bets as they fled to safer shores.

 Robert Griffiths, equity strategist at Credit Suisse, said he believed Trump would not be willing to risk the effect a second round of tariffs would have on the US economy, thus leaving scope for a de-escalation.
Germany's trade-sensitive DAX and London-listed equities tacked on 1 per cent, while French stocks gained 1.5 per cent.

Trade sensitive European auto and tech stocks bounced 2.2 per cent and 1.2 per cent each, after being caught at the heart of Monday's selloff, at which point the STOXX 600 had outperformed the S&P 500.

Lukas Daalder, BlackRock's chief investment strategist for the Netherlands, said hopes the eurozone economy is through the worst and bottoming out, relatively low valuations and optimism around a US-China deal will soon be brokered were helping fuel the gains.

However, the STOXX 600 is down 3.8 per cent this month, set for its biggest monthly loss since December.

Among auto stocks, Ferrari added 3.3 per cent, leading the sector index's rise. On the other hand, Renault tempered sector gains, falling 2.3 per cent.

The French carmaker's Japanese partner, Nissan Motor Co., flagged its weakest annual profit in more than a decade.

Banks rose 0.9 per cent, with Commerzbank up 4.3 per cent after Reuters reported UniCredit had stepped up preparations for a potential bid for the German lender.

Unicredit shares fell 1.7 per cent, on a day when Italian banks' shares were pressured due to their holdings of the country's sovereign bonds.

Italian cable maker Prysmian and German pharma group Evotec climbed 7.5 per cent and 5 per cent, respectively, on positive earnings updates.

Vodafone slid after a dividend cut, walking back on a pledge to maintain one of the biggest payouts in Britain, so it can build 5G networks and complete its looming acquisition of Liberty Global assets.

LONDON — Global equities fell on Monday after their worst week of 2019, as hopes of an imminent US-China trade deal were crushed and neither side showed a willingness to budge, raising fears of a fresh round of tit-for-tat tariffs.

The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests.

“Looks like we are just slowly ebbing away. More Tweets from Trump over the weekend stoking the fires for a trade war,” said John Woolfitt at London-based Atlantic Markets.

The impasse left investors bracing for threatened retaliation by China for Washington’s tariff increase on Friday on $200 billion worth of Chinese goods. The move followed accusations by US President Donald Trump that Beijing had reneged on earlier commitments.

The pan-European Stoxx 600 slipped 0.7 per cent while S&P 500 futures shed 1.3 per cent.

Chinese shares tumbled, with the benchmark Shanghai Composite and the blue-chip CSI 300 shedding 1.2 per cent and 1.8 per cent, respectively, while Hong Kong’s financial markets were closed for a holiday.

Japan’s Nikkei average sank as much as 1 per cent to hit its lowest level since March 28, before closing down 0.7 per cent.

“How far this escalates is what the market is really worried about as we haven’t really got full details of what the US will do and how China will retaliate. The important thing is what’s the impact on growth, and that’s what the market is really fearing,” said Justin Oneukwusi, portfolio manager at Legal & General Investment Management.

White House economic adviser Larry Kudlow told the “Fox News Sunday” programme that China needed to agree to “very strong” enforcement provisions to secure a deal. He said the sticking point was Beijing’s reluctance to put into law changes that had been agreed.

Kudlow said US tariffs would remain in place while negotiations continued and there was a strong possibility that Trump would meet Chinese President Xi Jinping at a G-20 summit in Japan in late June.

“The risk of a full-blown trade war has materially increased, even though both sides seem to still want a trade deal and talks are expected to continue,” UBS economist Tao Wang said.

Washington said it was preparing to raise tariffs on all remaining imports from China, worth approximately $300 billion.

“Our base case is for limited progress and Chinese retaliation,” said Michael Hanson, head of global macro strategy at TD Securities.

The offshore Chinese yuan fell to its lowest levels in more than four months at 6.90 to the dollar.

Major currencies were relatively calm with the euro steady at $1.1230, while the dollar was little changed against a basket of currencies at 97.324.

The US Treasury bond yield curve between three-month and 10-year rates inverted on Monday for the second time in a week, with the 10-year yield now standing 0.0025 per cent above the shorter-maturity bill.

Viewed as a classic warning signal of a looming US recession, the curve inverted last Thursday for the first time since March.

The US curve has inverted before each recession in the past 50 years. It offered a false signal just once in that time.

“Overall in the short term the chances of recession have increased,” Legal & General’s Oneukwusi said.

The trade war hit emerging market stocks, which were down 0.7 per cent, hovering near January lows.

JPMorgan said it had reduced its emerging markets risk for the second time in as many months on Monday following the set-back in US-China trade talks.

In commodities, oil futures rose on increasing concerns about supply disruptions in the crucial producing region of the Middle East. Brent crude futures rose 0.5 per cent to $71.00 a barrel and US West Texas Intermediate futures were up marginally at $61.73 per barrel.

In digital currencies, Bitcoin continued to move higher, holding onto gains over weekend. Bitcoin jumped more than 10 per cent on Saturday and marked a nine-month high of $7,585.00 on Sunday.