European stocks were in the red on Tuesday, as trade tensions returned to the fore after President Donald Trump refused to rule out increasing tariffs on Chinese imports in 2019. The Stoxx Europe 600 fell 0.6% to 356.15. The German DAX fell 0.4% to 11,302.25, the French CAC 40 index lost 0.5% to 4,969.35 and the FTSE 100 lost 0.6% to 6,994.21.

U.S. stocks bounced back from early losses to close higher amid trade tensions with China. The S&P 500 index climbed 0.3%, to end at 2,628.20. The Dow Jones Industrial Average rose 0.4%, to 24,748.73 and the Nasdaq Composite Index was little up to close at 7,082.70.

Morgan Stanley has initial plans to base around 50 staff in the German city because of Brexit

Morgan Stanley has started moving London-based investment bankers to Frankfurt as part of initial plans to have around 50 staff based in the German city because of Brexit.

The Wall Street bank has put staff who sell bonds on behalf of other banks and governments in its first wave of relocations, according to people familiar with the matter.

It comes as the City of London's biggest financial institutions push ahead with preparations for the UK's impending split from Europe instead of waiting for clarity on a future trade deal.

UK Prime Minister Theresa May has successfully struck a withdrawal agreement with European Union negotiators but faces a battle to convince her country's parliament to vote it through next month.

The prospect of a no-deal Brexit and the loss of single-market access overnight on March 29, 2019, mean banks have chosen to start taking action.

Morgan Stanley ultimately plans to relocate both equity and debt bankers serving European clients to Frankfurt. Mergers and acquisitions bankers are not currently among those being asked to move.

One person familiar with Morgan Stanley's plans said the bank will also hire 50 new staff in Frankfurt. A further 100 will be added across European cities including Madrid, Milan, Paris and Rome.

Bankers working in Europe’s bond markets are on the frontline of Brexit. They are often required to win business from corporate clients in the EU and then bring deals back to London, where so-called syndicate bankers help to sell the bonds to global investors.

Morgan Stanley's decision to begin moving debt bankers from London chimes with steps being taken by rivals, including BNP Paribas, Crédit Agricole, Credit Suisse, Standard Chartered and MUFG.