Trade war fears mount as Trump says China meeting 'unlikely' - as it happened
Investors rattled after President Trump said there were no plans to meet President Xi Jinping before US tariffs on Chinese imports kick-in next month
- European markets subdued after falls in Asia
- German trade data beats expectations
2.54pm GMT
The gloomy mood is prevailing on both sides of the Atlantic, with investors finding very little to cheer.
A major factor weighing on sentiment is the lack of progress on a trade between the US and China, which is looking increasing unlikely ahead of the 2 March deadline, at which point 25% tariffs will be imposed on Chinese goods imported into America.
1.50pm GMT
Over in Greece, the country has taken another step forward as it rebuilds its finances. Helena Smith reports:
Almost four years after they were first imposed, capital controls in Greece are finally on their way to being abolished. Greece's central bank governor Yiannis Stournaras, held talks today with the heads of the country's five major banks to discuss ending restrictions on business transactions abroad - the last capital control still in place.
It would be very important for the business community. It's the last one [control] in place. Today's talks will be followed by others before the government announces the decision.
12.44pm GMT
US futures are down as worries linger about the lack of progress on a trade deal between America and China.
This is how it's shaping up:
11.57am GMT
Connor Campbell, analyst at the spread betting firm Spread Ex, is not expecting much optimism when Wall Street opens later, as trade fears weigh on sentiment.
The European indices couldn't shake that sinking feeling on Friday, falling further into the red as the day went on.
Facing a half a percent decline, the Dow Jones is all set to open Friday's session at 25,050, basically back to where it started the week having hit a fresh 2 month high of 25,400 on Wednesday.
11.21am GMT
As the mood across global markets becomes distinctly subdued, Bloomberg considers whether Fed chair Jerome Powell will do them any favours:
Jay Powell seems hesitant to spook investors with further hikes https://t.co/mbbcMESMGR
10.30am GMT
A blogpost written by Jeff Bezos, the world's richest man and founder and chief executive of Amazon, is topping all the headlines today.
Related: Jeff Bezos: the man behind the Amazon phenomenon
9.56am GMT
The pound is under pressure again this morning, weighed on by Brexit stalemate and a downbeat assessment of the UK's economic prospects from the Bank of England.
It is currently down 0.2% against the dollar at $1.2930, and down 0.1% against the euro at a1.1324. Sterling is down more than 1% against both currencies this week, the worst performance since October.
Related: UK economy set for worst year since financial crisis, says Bank of England
9.37am GMT
Michael Hewson, chief market analyst at CMC Markets, gives his take on the mood among investors:
After the big declines seen yesterday it's been a subdued start for markets in Europe this morning as investors take stock with respect to the next moves in the US, China trade talks.
The news that President Trump and Xi won't be meeting before the March 1st deadline for an increase in tariffs, has raised concerns, in the absence of another extension to the trade truce, that the global economy will struggle to absorb further costs on goods and services.
9.21am GMT
In other developments this morning, the takeover tussle for control of cross-border payments firm Earthport has ramped up a notch after credit card giant Visa submitted an improved 247m bid, prompting rival Mastercard to say it was considering whether to improve on the offer.
Visa said early on Friday that it was willing to increase its offer for London-based Earthport, submitting a bid 23% higher than the surprise 198m offer it made over the Christmas period and 12% above a subsequent counter-offer from Mastercard.
9.13am GMT
We've had some positive trade news this morning, courtesy of Germany.
Exports from Europe's biggest economy jumped 1.5% in December, easily beating expectations of a 0.2% increase.
Today's trade data is a welcome sign of life, confirming our view that the assessment of the German economy currently needs less black-and-white thinking and is more nuanced.
Some might consider it whistling in the dark, but we remain modestly optimistic for the German growth outlook this year. The labour market is strong and if investment accelerates and there is some fiscal stimulus, the one-off factors which caused the slowdown in the second half of 2018 should also gradually reverse.
8.26am GMT
The subdued mood among investors in the US and Asia has spread to Europe.
Trump's comments have dealt a blow to hopes that a US/China trade deal might be struck before tariff hikes are imposed on 2 March.
8.18am GMT
Neil Wilson, analyst at Markets.com, says the latest blow to trade talks doesn't mean it's all over:
Two big China trade items knocked back markets yesterday and are likely to weigh on the European session on Friday. First we won't get a Trump-Xi meeting before tariffs are set to increase on March 2nd. Whilst this is a bit of a blow, it's not in itself a reason to think trade talks are not going anywhere.
The key trigger for the selling was when White House economic advisor Larry Kudlow sounded a cautious note on trade talks, saying that there is a 'pretty sizeable distance to go'.
8.13am GMT
Meanwhile Trump has been named in another spat which is leading the headlines this morning:
Related: Jeff Bezos accuses National Enquirer owner of 'extortion and blackmail'
7.58am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Hopes that the US and China can strike a trade deal before a hike in tariffs is imposed on Chinese goods imported into America were dealt a blow on Thursday.
Up to now the markets have been optimistic about a trade deal being reached, despite little solid evidence. Trump's stance is now rattling investor nerves just weeks before the deadline.
Chinese markets are still closed for Chinese New Year, re-opening on Monday. However, traders in Hong Kong are returning to their desks and we are starting to see volumes ramp up. The reaction we are seeing is to the deteriorating economic outlook as well as increased concerns over the fragile US - China trade relationship.