US stocks gave up early gains and finished lower, undoing some of the optimism the US and China will conclude a trade deal later this month that had propped up global markets.

The S&P 500 ended down by 0.4 per cent, but had been as much as 1.3 per cent lower. The Nasdaq Composite shed 0.2 per cent.

Earlier in the day, global stocks rallied on hopes Washington and Beijing will agree on trade. Morning declines for Wall Street weighed on European stocks late in their session, though. The CSI 300 index of major Shanghai and Shenzhen-listed stocks rose as much as 3.7 per cent, bringing it 29 per cent higher in the year so far, although it pulled back slightly to close up 1.2 per cent.

The advance also comes as China’s annual legislative session opened amid investor anticipation of more supportive policy to combat a slowdown in growth for the world’s second-largest economy.

The greenback was in the spotlight following a weekend speech from Mr Trump in which he reiterated his desire for a weaker dollar and again criticised the Federal Reserve’s monetary policy.

The DXY index, which tracks the buck against a weighted basket of global peers, was up 0.1 per cent.

Treasuries firmed as investors favoured the relative safety of government debt, and pushed yields lower. The yield on the benchmark 10-year US Treasury was down 2.9 basis points at 2.7259 per cent.

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Snapshot

Price+/- %
S&P 5002792.81-0.4
Dollar index96.6030.1
Euro vs dollar$1.1340-0.3
Brent$65.61+0.8

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