Global stocks slide with trade in short; Oil prices up after OPEC

Markets are closed in Japan, China and South Korea and volumes are likely to remain limited.

Sydney: Stocks dropped in Europe after a bearish session in Asia as China canceled planned trade talks with US officials, which could trigger an escalation of the tariff war between the world's largest economies. Brent crude oil has surpassed $ 80 a barrel after OPEC rejected calls by US President Donald Trump to increase supply.

Miners and automakers were among the biggest bearers of the Stoxx Europe 600 index, with futures on the S & P 500, the Dow and Nasdaq being weaker. Hong Kong stocks fell, while volumes in Asia were lower than average due to holidays in the larger markets, China and Japan. The dollar rose while Treasury bills were stable. Market shares and emerging currencies weakened and the Australian dollar fell as a new set of US-China tariffs came into effect.

The escalating trade tensions between the United States and China will test two weeks of significant gains for equities, partly because of the optimism that economies can overcome because of the trade restrictions. JPMorgan Chase & Co. said it was beginning to incorporate into its strategy a growing potential for the "Phase III" of the trade war next year, affecting all Chinese imports, which would lead to weaker Chinese growth and to US stocks.

The next meeting this week is the Federal Reserve's political meeting, which is expected to see interest rates rise for the third time this year, as markets are increasingly priced in December.

Elsewhere, Indian equities and the rupee slid as a result of cracks in Asia's strongest stock market this year, amid concerns over the difficulties of the non-bank financial sector.

The Stoxx Europe 600 Index fell 0.2% at 08:04 London time, the first decline in more than a week. The futures on the S & P 500 index fell 0.2%, the largest decline in a week. The MSCI All-Country World Index fell 0.2%, the first decline in a week. The MSCI Emerging Market Index fell 0.9%, the first decline in a week.

The Bloomberg Dollar Spot Index gained 0.1 percent. The euro fell 0.1 percent to 1.1737 dollar. The Japanese yen fell 100% to 112.55 to the dollar. The Turkish lira fell 0.1% to 6.3001 to the dollar. The South African rand fell 0.3% to 14.3654 dollars, the largest decline in more than a week. The MSCI Emerging Markets Currency Index fell 0.2%, the first decline in a week.

The yield on 10-year Treasury bills rose by one basis point to 3.07%, reaching its highest level in more than four months with its fifth consecutive gain. Germany's 10-year yield fell by one basis point to 0.46%, the lowest in more than a week. Britain's 10-year yield remained unchanged at 1.553%. The spread of 10-year Italian bonds over Germany rose by three basis points.

The Bloomberg Commodity Index rose 0.3%, reaching its highest level in more than six weeks with its fifth consecutive gain. West Texas Intermediate crude rose 1.6% to $ 71.92 per barrel, the highest level in almost four years. LME copper fell 0.1% to $ 6.354.50 per metric ton. Gold fell 0.2% to $ 1,197.38 an ounce, the lowest in more than a week.

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