UK and European stocks pared earlier gains mid-afternoon, after U.S. President Donald Trump claimed China had “totally violated” a preliminary trade agreement. The FTSE 100 and major European indices turned lower as trade tensions resurfaced, dampening earlier optimism.

U.S. stock remained flat, reflecting sentiment that initial optimism over a framework agreement had mostly been priced in. Futures for the Dow, S&P 500, and Nasdaq were all modestly flat, as markets braced for today’s CPI release and absorbed uncertainties around the continuing tariffs .

Asia-Pacific markets mostly declined, weighed by concerns over the global economy, inflation risks, and renewed trade uncertainty linked to Trump’s proposed “reciprocal” tariffs.

Gold prices traded flat, as the dollar strengthened and investors remained cautious ahead of inflation figures.

Oil prices edged higher, amid expectations of an OPEC+ output hike and lingering trade-related uncertainty.

In equity markets, Asia-focused Prudential and Standard Chartered were among the top risers.

Housebuilders rallied, with Reeves expected to announce investment for social and affordable housing in the spending review. Persimmon, Barratt Redrow, Berkeley, Vistry, Crest Nicholson and Bellway were all up.

On the downside, building products manufacturer Ibstock tumbled as its guidance for full-year adjusted EBITDA fell short of consensus expectations.