European and US stock markets fell before recovering somewhat as markets weighed trade tensions between Beijing and Washington and digested fresh Federal Reserve commentary.

Wall Street indices opened firmly in the red amid the latest back and forth involving the United States and China on trade. But US stocks recovered somewhat following midday remarks from Fed Chair Jerome Powell.

Powell’s observation that US payroll gains have “slowed sharply” strengthened confidence the US central bank would cut interest rates later this month.

“In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen,” Powell said.

While two of the three major US indices still finished in the red, the broad-based S&P 500 shed just 0.2 percent at 6,644.31, about 9

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