US-China tariffs subdue stock markets

Global stock markets steadied on Thursday as China and the US exchanged fresh tit-for-tat tariffs on billions of dollars of goods.

Washington has imposed levies on $16 billion in Chinese imports, sparking an immediate retaliation in kind from Beijing, which said it "firmly opposes the tariffs and has no choice but to continue to make the necessary counter-attacks".

China also said it "clearly suspected" the United States of violating World Trade Organization rules and that it would file a complaint with the group.

The fresh tariffs come as US and Chinese officials hold their first talks since June aimed at easing a row that has dragged on equities for months. However, observers are cautious about what progress they will make initially.

"Today sees the US-China trade talks come to a head, with low market expectations likely to drive the response to any final announcement," said Joshua Mahony, market analyst at IG trading group.

Thursday's levies are the second round of such measures after the world's top two economies swapped tariffs on $34 billion of goods in July.

Investors were also keeping tabs on developments in Washington after US president Donald Trump's former personal adviser admitted a series of charges including illegal use of election funds.

Trump's ex-campaign manager was also convicted on several counts including bank and tax fraud.

Trump warned Thursday the US economy would collapse if he were impeached, as legal chaos roiling the White House has experts saying his presidency is under threat.

"I will tell you what, if I ever got impeached, I think the market would crash. I think everybody would be very poor," Trump said on "Fox and Friends".

Wall Street's main indices nudged lower at the opening bell, with Dow slipping 0.09 per cent.

In Europe, London was essentially flat, with Paris off 0.06 per cent and Frankfurt down 0.1 per cent.

On currency markets Thursday, the dollar sprang back to life after this week's travails, with Federal Reserve minutes signalling it is ready to lift rates again as the economy continues to improve.

"Many participants suggested that if incoming data continued to support their current economic outlook, it would likely soon be appropriate to take another step," the minutes said.

The greenback had taken a hit this week from Trump's comments criticising the central bank's rate increases and accusing it of not backing his economic plan.

However, the Fed's policy committee on Wednesday pointed to "ongoing trade disagreements and proposed trade measures as an important source of uncertainty and risks".

In addition, most members said "an escalation in international trade disputes was a potentially consequential downside risk for real activity".

Attention was meanwhile also on this week's upcoming annual central bankers' symposium at Jackson Hole in Wyoming, with investors hoping for some idea about governors' plans in light of the China-US trade row.

- Key figures around 1330 GMT -

New York - Dow Jones: DOWN 0.09 per cent at 25,709.94 points

London - FTSE 100: FLAT at 7,574.73

Frankfurt - DAX 30: DOWN 0.1 per cent at 12,369.84

Paris - CAC 40: DOWN 0.06 per cent at 5,420.55

EURO STOXX 50: UP 0.04 per cent at 3,418.65

Tokyo - Nikkei 225: UP 0.2 per cent at 22,410.82 (close)

Hong Kong - Hang Seng: DOWN 0.5 per cent at 27,790.46 (close)

Shanghai - Composite: UP 0.4 per cent at 2,724.62 (close)

Euro/dollar: DOWN at $1.1567 from $1.1595 at 2100 GMT

Pound/dollar: DOWN at $1.2859 from $1.2914

Dollar/yen: UP at 110.93 yen from 110.60 yen

Oil - Brent Crude: DOWN 43 cents at $74.35 per barrel

Oil - West Texas Intermediate: DOWN 33 cents at $67.53