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European markets closed mixed following yesterday's global selloff fuelled by fresh anxieties concerning international trade. European Union Trade Commissioner Cecilia Malmstrom stated the EU is not planning to hold trade negotiations with the United States "for the moment."
Meanwhile, the United Kingdom formally approved the Brexit withdrawal bill which allows EU law to be transferred into UK law to facilitate the country's exit from the union. UK Prime Minister Theresa May saluted the news, saying that "the departure from the bloc will grant Britain control of its money, laws and borders." European Central Bank's new vice president Luis de Guindos warned against protectionism, rising oil prices and global debt as most prominent risks to European economy growth.
The FTSE 100 ended the day 0.62% higher. Cruise Company Carnival Corporation & Plc gained 3.08%. The DAX fell 0.21% at the closing bell, with industrial producer Thyssenkrupp AG declining 2.65%. The CAC 40 increased 0.11%. Semiconductor manufacturer STMicroelectronics added 1.95%.
US Dollar jumps against the Yuan
Chinese currency's official exchange rate against the dollar fell for the eighth out of last nine sessions on Tuesday, with a streak of nine days in the red for the offshore value, as investors showed concern about potential limits for investments from the most populous nation in the technology sector in the United States. The day before, Secretary of the Treasury Steve Mnuchin said barriers would be built for all countries found to "steal" domestic technology.
Fear appeared to persist in the markets even though Peter Navarro, President Donald Trump's chief trade advisor, attempted meanwhile to downplay volatility and claimed there are no immediate plans of the sort. Earlier, the People's Bank of China said it would stimulate lending with an easing in banks' reserve requirements.
US may sanction Turkey
The United States threatened to introduce sanctions against Turkey should it buy Russia's S-400 air defense system, Assistant Secretary of State for European and Eurasian Affairs Wess Mitchell said, during a hearing in the US Senate. The announcement came after The US Senate passed a draft defense bill earlier this month halting the transport of F-35 Joint Strike Fighter aircraft to Turkey until it has been verified that Turkey will not accept any delivery of Russian S-400 systems.
Mitchell expressed concern over the future recovery of US relations with Turkey if the Russian air defense system deal goes through. "We will introduce sanctions within Countering America's Adversaries Through Sanctions Acts (CAATSA)", he added.
The Assistant Secretary also reminded that Turkey is NATO member and that the military arrangement with Russia is not compatible with its membership in the alliance. However, he added that the US is ready to work with the newly elected Turkish President Recep Tayyip Erdogan on improving bilateral relations between the two countries.
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