Global stock markets mostly fell yesterday as traders wondered when and how a US-China trade war will be resolved, prompting mild profit-taking after strong recent gains, dealers said.

Optimism over ongoing trade talks between the US and China had helped push US markets to new records last week, but “a deal has yet to be inked and whether the US will roll back tariffs on China remains a huge point of contention”, said analysts at the Charles Schwab brokerage.

On Wall Street, the Dow index sagged at the opening bell, matching losses in key eurozone markets, but London managed to eke out a small gain.

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.

In foreign exchange markets, 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.

Shares in Madrid stock exchange operator BME, meanwhile, were up nearly 38 per cent at €35.04, in reaction to a bid by Swiss exchange SIX valuing BME at €34 per share.

The premium over the offer price reflected investor sentiment that Euronext, might swoop in with a hostile counter-offer.