(Bloomberg) -- The risk-on mood that's permeated global financial markets this week showed signs of abating as European stocks fell along with equities in Asia and U.S. futures edged lower. Treasuries edged higher after sliding on Thursday.
Miners and banks dragged the Stoxx Europe 600 Index down while contracts on all three main American stock indexes pointed to a weak open after the gauges notched record highs in the previous session. An early Asia rally fizzled out leaving most shares down in the region. Hong Kong stocks led the drop after the death of student protester threatened to inflame demonstrations planned for this weekend. The dollar eked out a gain while gold fluctuated after slipping Thursday.
Investors appear to be catching their breath after a recent rally in risk assets, spurred by indications that the U.S. and China are heading toward an interim deal to halt the trade war. American and Chinese officials both said Thursday that a phase-one agreement would feature pledges to roll back tariffs on each others' goods in phases.
"Moving from a non-escalation to a de-escalation, which would be rolling back the tariffs, has got everybody excited," Adam Taback, global head of alternative investments at Wells Fargo Investment Institute, told Bloomberg TV.
On the data front, China's exports declined less than expected in October as optimism rose about an interim trade deal, though imports contracted for a sixth straight month.
Elsewhere, oil slipped but remained set for a weekly gain amid the signs of progress on trade. Japanese 10-year government bond yields climbed alongside their Australian peers. China's offshore yuan edged lower though stayed stronger than 7 per dollar.
Here are the main moves in markets:
--With assistance from Joanna Ossinger and Adam Haigh.
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