Global stock markets decline as Trump, Xi speak amid trade woes

LONDON After his return to the White House Trump launched a tariffs blitz, introducing a 10 per cent minimum tariff and higher rates on many countries

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Stocks markets slid on Thursday after US President Donald Trump and Chinese leader Xi Jinping spoke amid their trade war, while the European Central Bank signalled an end to its rate-cut cycle.

Wall Street's major indices rose modestly as trading got underway, but had trouble holding onto the gains and soon slid into the red.

Chinese state media reported that Xi had held a widely anticipated call with Trump, with investors hoping it could ease trade tensions - but no details were provided.

The call follows officials from the world's two biggest economies accusing each other of jeopardising a trade war truce agreed last month in Geneva.

"The stock market has traded more timidly of late... mindful that there are a number of loose ends out there on the tariff front, not the least of which is the direction the US-China trade relationship is headed," said Briefing.com analyst Patrick O'Hare.

After his return to the White House Trump launched a tariffs blitz, introducing a 10 per cent minimum tariff and higher rates on many countries, with China subject to the highest rates.

Some of the higher rates have been suspended as negotiations are underway.

European stock markets were also in the red even though the ECB cut its key deposit rate a quarter point to two per cent, as expected.

It was its eighth reduction since June last year when it began lowering borrowing costs.