European stocks close mostly lower as US and China reach new deal

ISTANBUL

European stock markets ended the midweek with losses except for Britain as US President Donald Trump announced a new trade deal with China after negotiations between the top two economies in London.

The pan-European Stoxx 600 dropped 0.27%, or 1.48 points, to close at 551.64.

Germany's DAX 40 index was down 0.16% to end at 23,948.9 points, and France's CAC 40 fell 0.36% to close at 7,775.9

Italy's FTSE MIB 30 index dropped slightly, 0.07%, to 40,180.24 points.

Britain’s FTSE 100 index bucked the trend, rising 0.13% to 8,864.35 points.

A trade deal between Washington and Beijing “is done,” subject to final approval with the presidents of the two countries, US President Donald Trump said on Wednesday.

In a social media post, he said the US “is getting a total of 55% tariffs, China is getting 10%.”

"Full magnets, and any necessary rare earths, will be supplied, up front, by China," he said. "Likewise, we will provide to China what was agreed to, including Chinese students using our colleges and universities (which has always been good with me!)."

"Relationship is excellent!" he added.

Later, Trump said he and Chinese President Xi Jinping "are going to work closely together to open up China to American Trade.”

“This would be a great WIN for both countries!!!" he added.

Separately, US Commerce Secretary Howard Lutnick told CNBC on Wednesday that tariffs on China won't change again.

Lutnick said the 55% tariff rate Trump announced will include a 20% tariff on fentanyl, 10% reciprocal tariff, and 25% tariff rate from the president's first term.

US and Chinese officials met in London this week to discuss the tariff issue.

In April, the US began to implement huge tariffs on China, but in May, the US and China agreed to a broad rollback of punitive tariffs for an initial 90 days.