Europe’s stock markets mostly fell yesterday as traders kept tabs on the US-China trade war situation, dealers said.

“Stock markets in Europe are mostly showing marginal losses today as the bullish sentiment has cooled,” said David Madden, market analyst at trading firm CMC Markets.

“The US-China trade story continues to be in focus, and we heard that ‘constructive’ discussions took place over the weekend - but the absence of detail has encouraged traders to take some cash off the table.”

Frankfurt and Paris sagged but London edged upwards as caution prevailed. Hong Kong, meanwhile, rallied after last week’s hefty losses but investors remain on edge over violent protests that have wracked the city.

Asian equities however diverged as traders fretted over the outlook for a trade deal between China and the US, which are the world’s two largest economies.

Before the weekend, Wall Street’s Dow finished above 28,000 for the first time on Friday after top White House officials played up the progress of negotiations with Beijing.

US President Donald Trump’s economic adviser Larry Kudlow said the first part of a wider pact was on track, while Commerce Secretary Wilbur Ross said that there’ll be a deal “in all likelihood”.

Elsewhere, the pound extended gains on opinion polls showing a big lead for the ruling Conservative party ahead of next month’s general election, with traders hoping a clear victory will help Prime Minister Boris Johnson push through his Brexit deal.