U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng pose during U.S.-China trade and economic talks at Santa Cruz Palace, Spain’s main foreign ministry office, in Madrid, Spain, September 14, 2025.
United States Treasury | Via Reuters
LONDON — European stocks moved lower at the open on Tuesday, as investors assessed developments in the U.S.-China trade talks.
The pan-European Stoxx 600 was around 0.1% lower by 9:30 a.m. in London (4:30 a.m. ET), with most sectors in negative territory. All major regional bourses posted losses, with Germany’s DAX shedding 0.3% in morning trade.
In the U.K., official data showed on Tuesday that the country’s unemployment rate held steady at 4.7% in July, remaining at the four-year high it hit in June.
Meanwhile, annual growth in average earnings — excluding bonuses — slowed to 4.8% in the three months to July, down from 5% in the previous three-month period.
“The headline unemployment rate, which held steady, masks a cooling trend that will be unsettling for many workers,” Danni Hewson, head of financial analysis at AJ Bell, said in a Tuesday morning note. She signaled that job openings were falling, while many businesses were delaying recruitment and investment decisions until November’s Autumn Budget.
“This trend will be closely watched by Bank of England rate setters,” Hewson added. “Although markets aren’t pricing in a cut this week, this softening opens up the potential for one more rate cut this year.”
The British pound was last seen 0.3% higher against the U.S. dollar, trading at around $1.363, while U.K. government borrowing costs ticked marginally higher.
Global markets are also keeping a close eye on talks in Spain after U.S. President Donald Trump said the U.S.-China trade negotiations were progressing well.
The trade talks were overshadowed by a “framework” deal regarding the divestment of Chinese-owned TikTok announced by Treasury Secretary Scott Bessent Monday. Speaking from Madrid, Bessent noted that the commercial specifics of the arrangement have already been settled.
Both Trump and Chinese President Xi Jinping will speak on Friday to discuss the terms.
The U.K is meanwhile preparing for White House leader’s state visit. The U.S. president and his wife, Melania, arrive on Tuesday evening and will spend Wednesday at Windsor Castle with King Charles and Queen Camilla before holding talks with U.K. Prime Minister Keir Starmer on Thursday.
Overnight, Japan’s benchmark Nikkei 225 surpassed the 45,000 mark for the first time, leading gains in Asia-Pacific markets.
In the U.S., S&P 500 futures were flat on Monday night after the Senate confirmed Trump’s pick to join the Federal Reserve, Stephen Miran, just one day before the central bank meets to consider whether to cut interest rates.