London, Dec 10 (AFP/APP): European stock markets slumped Tuesday and the dollar faltered, dragged down by nervousness surrounding China-US trade talks with less than one week until Washington was due to impose fresh tariffs on Chinese goods. London was hit additionally by official data showing the UK economy flattened in October after contracting the previous two months. But sterling hit an eight-month high at $1.3190, one day after reaching a 2.5-year peak versus the euro. The British currency remains well supported going into the final straight of the UK general election Thursday, with Prime Minister Boris Johnson’s Conservatives tipped to win a majority that will help him drive through his Brexit deal. Regarding European equities, “the Sunday deadline for further US tariffs on Chinese goods has dragged stock markets lower, with an underwhelming set of UK data… further hindering sentiment”, said Joshua Mahony, senior market analyst at IG trading group. Major Asian indices closed little changed on Tuesday. The general consensus is that China and the US will eventually hammer out a partial pact as part of a wider trade agreement, which has fuelled a global equity rally for weeks. However comments from both sides — optimistic and downbeat — … Continue reading European stock markets slump, sterling extends dollar-rally