LONDON (Reuters) - Caution seeped back into world markets on Friday, with news of U.S.-China trade talks offset by an end-of-week wobble in emerging markets as the Turkish lira’s recovery ran out of steam.
A share trader checks his screens at the stock exchange in Frankfurt, Germany October 2, 2017. REUTERS/Kai Pfaffenbach
Falls in Europe left MSCI’s All-Country World index, which tracks shares in 47 countries, less than 0.1 percent higher on the day and heading for its third straight weekly fall.
Futures indicated a lower open on Wall Street.
A Chinese delegation led by Vice Minister of Commerce Wang Shouwen will meet U.S. representatives, China’s Ministry of Commerce said in a statement, with the Wall Street Journal reporting that talks will take place in Washington on Aug. 21 and 22.
The world’s two largest economies are due to slap tariffs on billions of dollars of each other’s goods on Aug. 23, in addition to levies that took effect on July 6.
“There is still a great deal of difference between agreeing to talk and coming to an agreement,” said CMC Markets analyst Michael Hewson.
“For now it appears an escalation has become less likely, hence yesterday’s rebound in equity markets,” he added, referring to an overnight rally on Wall Street.
Turkey’s lira, meanwhile, dropped as much as 8.5 percent to 6.3 per dollar, having recovered ground rapidly in recent days. It was last down by about 4 percent.
The currency plunged to a record low of 7.24 per dollar at the start of the week as a worsening of relations between Turkey and the United States added to losses driven by concerns over President Tayyip Erdogan’s influence over monetary policy. The currency has lost a third of its value this
