World stocks held near two-month lows on Tuesday as slightly more optimistic comments from U.S. and Chinese officials on trade brought some comfort, a day after equities suffered their worst selloff so far this year.
Fear the United States and China are spiraling into a fiercer, more protracted trade dispute that could derail the global economy has rattled investors in recent weeks. The sell-off accelerated on Monday after China announced plans for retaliatory tariffs .
But the Chinese government’s top diplomat said China and the United States have the “ability and wisdom” to reach a trade deal that is good for both. U.S. President Donald Trump said he was optimistic about resolving the trade dispute.
Those signals were enough for now to provide respite to battered markets.
European shares rebounded from two-month lows with London, Frankfurt and Paris 0.5% to 1% higher. And having tumbled more than 2% on Monday, U.S. stock futures suggested Wall Street shares were headed for a stronger open .
