Stock markets fell yesterday after President Donald Trump ruled out a partial trade deal with China, casting fresh doubt on any early agreement.

A key survey pointing to weakness in the eurozone economy also weighed heavily on European equity markets, analysts said.

Some travel and tourism stocks, meanwhile, were higher after British giant Thomas Cook went bankrupt.

The price of oil steadied after Iran warned the presence of US forces in the Gulf was causing instability in the region.

Equity markets were also tracking comments from Trump saying he wanted to strike a full trade deal with Beijing, knocking back hopes for a piecemeal agreement between the economic superpowers.

Some rivals of British travel giant Thomas Cook, which declared bankruptcy after last-ditch re-financing attempts failed, saw their shares rise sharply.

The pound sank against the dollar at the start of a crucial week for Britain with the Supreme Court to decide whether Prime Minister Boris Johnson acted legally in suspending Parliament for an extended period as he pushes for Brexit on October 31.

Meanwhile, the euro weakened after data a closely watched survey showed that Brexit and trade war fears drove eurozone business growth to its lowest level in six years in September, warning that the single currency area’s economy was “close to stalling”.