London: Global stock markets diverged on Monday, with a weak pound lifting London's benchmark FTSE 100 index and offsetting trade war concerns dragging down equities elsewhere.
In the eurozone, Frankfurt stocks dipped 0.2 per cent and Paris flatlined, as US President Donald Trump eyed fresh tariffs on a swathe of Chinese goods - while NAFTA talks with Canada appeared to hit a wall.
"European equity markets are mixed... as traders remain cautious about global trading relationships," said CMC Markets UK analyst David Madden.
"President Trump appears to be taking a tough line with Canada and the EU, and there is speculation he will ramp up tariffs on Chinese imports."
In a tweet over the weekend, Trump threatened to exclude Canada from a new North American Free Trade Agreement after negotiations to rewrite the 1994 pact ended without agreement.
Trump had already roiled markets last week by saying he wanted to impose tariffs on $200 billion (Dh734 billion) of Chinese imports as soon as public consultation ends on Thursday, adding to the $50 billion already targeted.
That rekindled fears of an all-out trade war between the world's top two economies.
Asian stock markets opened the week on a negative note, with Tokyo closing down 0.7 per cent, Hong Kong losing 0.6 percent and Shanghai shaving 0.2 per cent.
Brexit division hits pound
London equities meanwhile jumped 0.9 per cent on Monday on the back of the sliding pound, which traditionally boosts the share prices of multinationals.
Sterling sank on growing political acrimony over British Prime Minister Theresa May's Brexit blueprint, and after weak UK manufacturing survey data.
Pro-Brexit figurehead Boris Johnson labelled May's plan a surrender that hands "victory" to the European Union, ahead of the nation's exit from the bloc in March 2019.
The EU's Brexit negotiator Michel Barnier remains "strongly" opposed to her blueprint, saying it could lead to the downfall of European integration.
"The Brexit optimism of last week has been predictably fleeting, with Barnier ripping Theresa May's Chequers plans into shreds," noted IG analyst Joshua Mahony.
Meanwhile, 20 MPs in May's centre-right Conservative Party publically pledged to reject her so-called Chequers plan, which would keep Britain close to the EU on trade.
Britain is set to leave the bloc on March 30, but the two sides want to strike the divorce agreement by the October 18-19 EU summit to give their parliaments enough time to endorse a deal.
Elsewhere on currency markets, Turkey's lira halved earlier losses as the country's central bank said it would take the "necessary actions to support price stability".
The comment followed data showing inflation hit a 15-year high of 17.9 per cent last month as a dive in the currency - it is down about 40 per cent this year - filters through to consumers.
However, the bank has refused to lift interest rates to combat the surging prices, putting pressure on the embattled Turkish economy.
Key figures around 1130 GMT
London - FTSE 100: UP 0.9 per cent at 7,498.74 points
Frankfurt - DAX 30: DOWN 0.2 per cent at 12,338.48
Paris - CAC 40: FLAT at 5,408.55
EURO STOXX 50: FLAT at 3,393.14
Tokyo - Nikkei 225: DOWN 0.7 per cent at 22,707.38 (close)
Hong Kong - Hang Seng: DOWN 0.6 per cent at 27,712.54 (close)
Shanghai - Composite: DOWN 0.2 percent at 2,720.73 (close)
New York - Dow Jones: DOWN 0.1 percent at 25,964.82 (close)
Euro/dollar: UP at $1.1619 from $1.1602 at 2100 GMT
Pound/dollar: DOWN at $1.2870 from $1.2960
Dollar/yen: UP at 111.11 yen from 111.03 yen
Oil - Brent Crude: UP 47 cents at $78.11 per barrel
Oil - West Texas Intermediate: UP eight cents at $69.88
