Fresh US-China trade fears spook stock markets

European shares handed back gains yesterday to close flat after comments from the White House undid optimism over a potential US-China trade deal, while a strong rally in shares of chemicals company Bayer propped up German equities.

The pan-European Stoxx-600 index rose up to 0.4% earlier in the day, spurred by signs overnight of progress between Washington and Beijing in resolving their trade dispute that has roiled markets for the past year.