Global stocks are dropping on trade war worries after China reportedly wants more talks before signing Trump's deal

Trump tweeted on Sunday that China has already begun increasing agricultural purchases from America, after the initial handshake agreement.
Data from China meanwhile showed that the trade war is hurting China's economy as both imports and exports fell in September.
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American equities are set to fall on Monday morning after Bloomberg News reported that China wants more talks with the US before agreeing to Trump's "Phase One" deal.

At 11:15 am in London, (7:15 am EST) US futures underlying the Dow, S&P 500 and Nasdaq were falling 0.5%, 0.5% and 0.6% respectively.

President Trump boasted of a partial trade deal agreed with China, which would stop a scheduled tariff hike on Tuesday from 25% to 30% if China upped its purchases of agricultural goods.

But Bloomberg, citing unnamed people familiar with the matter, on Monday morning reported that China wanted to "hammer out" the final details of the initial deal, before Xi Jinping agrees to sign it.

Bloomberg added that China may send another delegation to Washington, led by Vice Premier Liu He, to finalize that written deal. The Bloomberg sources also said that Trump may be planning to scrap the December tariff hike as well.

"Fake news? Maybe not entirely, but you can stick as much lipstick on it as you like and it will still be a pig," said Neil Wilson, chief markets analyst at Markets.com. "The Trump trade deal looks to be unravelling. What's concerning for the market is that the US and China are using different language to describe the deal and don't seem to be on the page at all.

"It wasn't even much of a deal in the first place the fact that China is not yet even on board with it suggests very little progress has been made, and the possibility of further gains are limited," Wilson added.

"I'd be worried that the White House, worried about losing face, now throws the baby out with the bath water and abandons whatever goodwill there was. Steve Mnuchin on tap shortly may clarify the situation."

Trump touted the outcome of the talks, tweeting on Sunday evening that, "CHINA HAS ALREADY BEGUN AGRICULTURAL PURCHASES FROM OUR GREAT PATRIOT FARMERS & RANCHERS!"

He added that his relationship with China is "very good," and that "We will finish out the large Phase One part of the deal, then head directly into Phase Two. The Phase One Deal can be finalized & signed soon!"

Both presidents of the countries are due to meet in Chile in November at the Asia-Pacific Economic Cooperation summit.

Stocks opened subdued on Monday after weak data from China showed the effects of Trump's trade war on China with both imports and exports slipping.

Meanwhile, reports of a Brexit deal impasse emerged in Europe , further dampening sentiments in Brussels.

Here's a look at global stocks and commodities as of 11:15 am in London (7:15 am EST):

In Europe, both the DAX and Euro Stoxx were down significantly, with the former falling 0.9% and the latter 1%.
In Asia, stocks closed higher, with the Nikkei up 1.2%, Shanghai Composite 1.2% and Hang Seng 0.8%.
Elsewhere, gold prices were rising 0.7%, but crude oil prices were down with Brent dropping 1.6% and WTI 2.5%.

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Global stocks are dropping on trade war worries after China reportedly wants more talks before signing Trump's deal

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