Stock markets turn cautious during European session.
Stock markets turn cautious during European session. European stock markets have erased early gains and DAX and FTSE 100 are down -0.03% and -0.45% respectively. Media reports of a tentative truce between the U.S. and China on trade had helped markets to broadly move higher during the Asian session, with the Nikkei closing 1.2% higher, the Hang Seng 1.4% and the CSI 300 with a gain of 1.1%. The combination of weaker than expected ESI economic confidence numbers and higher than anticipated German inflation data, however, saw markets starting to turn cautious again during the European session. Fears that investors have already priced in too much additional central bank easing, especially if there is progress on the trade front, may have added to the more cautious mood and as long as there is no firm agreement in place sentiment is likely to remain fickle. U.S. stock futures also lost most of their overnight gains and the Dow Jones is down -0.154%, while S&P and NASDAQ futures are still holding gains of 0.072% and 0.197% respectively. The front end WTI future meanwhile fell back from a high of USD 59.28 to now USD 58.81 as markets look ahead to the meeting between Russian and Saudi leaders at the G 20.