AAPL Apple Inc

By Anna Isaac and Joanna Chiu 

Global stocks fell Thursday after President Trump criticized China's efforts to reach a trade agreement, escalating concerns that the world's two biggest economies won't reach a deal this year.

Futures tied to the Dow Jones Industrial Average edged down 0.1%, a day after the gauge of U.S. blue-chip stocks logged its biggest fall of the month. Hong Kong's benchmark Hang Seng Index declined 1.6%, while the pan-continental Stoxx Europe 600 index retreated 0.5%, led by losses in sectors most exposed to the global economic impact of worsening trade tensions.

While visiting Apple Inc.'s Texas plant on Wednesday, Mr. Trump said China isn't "stepping up" to the level he wants for the two sides to reach a deal. That is further dimmed hopes that had already been diminishing after Mr. Trump's threats in recent days to raise tariffs further. The two sides so far have struggled to reach an accord on specific commitments from China regarding the purchase of U.S. agricultural products and the White House paring back existing levies.

"Markets have been climbing on hopes of a trade resolution and easier monetary policy," said Russ Mould, investment director at asset-management company AJBell. "Ostensibly it is down to statements from the Chinese authorities and President Trump. The algorithms are picking out these key statements and words and are driving lower accordingly."

While hopes fade for a resolution in coming weeks to a trade war that has weighed on the global economic outlook, investors aren't likely to see any relief from a quick-paced easing in U.S. monetary policy. Federal Reserve officials said little about what would prompt them to resume interest-rate cuts when they signaled a pause following last month's rate reduction, according to minutes of the policy meeting released Wednesday.

"Now the trade news was negative overnight from China, and the Fed minutes were disappointing insofar as they signaled a wait-and-see approach," Mr. Mould said.

Adding to strains between the two nations, Beijing on Wednesday summoned the highest-ranking U.S. diplomat in the capital to object to Washington's support for Hong Kong protesters after the House of Representatives passed legislation Wednesday requiring the U.S. to re-examine its relationship with Hong Kong. That put formal American support for the pro-democracy protests in the hands of Mr. Trump.

"Chances for the two countries to reach an accord before the end of this year are diminishing," said Steven Leung, executive director of institutional sales at UOB Kay Hian. Some investors were trimming bets on equities after recent market gains, Mr. Leung said.

Later in the day, investors will have a further opportunity to gauge the Fed's views on the economy and monetary policy when Minneapolis Fed President Neel Kashkari and Cleveland Fed President Loretta Mester give speeches. https://www.wsj.com/articles/economy-week-ahead-u-s-sentiment-and-housing-sector-readings-11574020800

The Labor Department is also scheduled to release data on jobless claims, offering a signal on the strength of the U.S. employment market. Separately, the National Association of Realtors will release figures on sales of existing homes, which will likely be parsed by investors for signs of a pick up in the muted housing market.

Write to Anna Isaac at anna.isaac@wsj.com

(END) Dow Jones Newswires

November 21, 2019 05:34 ET (10:34 GMT)

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