US stocks have slipped on news reports that President Donald Trump is unlikely to meet Xi Jinping, his Chinese counterpart, delaying a potential end to Sino-US trade tensions.
The S&P 500 dropped 1.5 per cent by lunch time in New York, as the prospect of a positive outcome to US-China trade tensions dimmed ahead of a key March deadline. US bonds rallied, with the yield on 10-year Treasuries dropping 3 basis points to 2.67 per cent.
In Europe, government bonds rallied and equities weakened after the European Commission cut its economic growth forecasts for the eurozone.
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