Europe was in contrast to the United States, as growth remained relatively robust with the jobless rate at the lowest in almost 50 years.
"What we are waiting to see is how this might impact the U.S".
The first is to limit USA investments in Chinese companies.
MSCI's world equity index, which tracks shares in 47 countries, fell 0.2%, heading toward its worst weekly performance since mid-August.
In the report on trade war talks, which were scheduled on October 10-11, in Washington, the people familiar with the arrangement and China's top diplomat said that China was willing to buy a number of US products.
Some market players suspect the dollar was also helped by continued tightness in dollar funding after U.S. short-term borrowing costs shot up last week.
China's currency the yuan fell by 0.4 percent against the U.S. dollar, to its weakest against the greenback in almost three weeks.
Those comments fuelled the positive mood after Trump on Wednesday praised the Chinese purchases, saying a trade deal could come sooner than people thought.
For Chinese investors though Monday will be the last chance to react to the new risk before a five day market closure until October 8 to mark the 70th anniversary of the Communist Party taking power in 1949. London stocks .FTSE added 1%, with exporters buoyed by a weaker pound central bank policymaker hinted at a cut in United Kingdom interest rates.
Nelson school students joined by older protesters in climate strike
However, spokesperson Shari Schwartz-Maltz, says educators understand and respect that a number of their students will take part. The rally at the Legislature Grounds, featuring speakers & performers, is expected to begin at 1:30 p.m. and go until 3:30 p.m.
The euro was pinned at its lowest level since May 2017, further helping export-oriented European stocks.
There is no indication that any moves by the USA are imminent, and bilateral high-level trade talks with China are still scheduled for next week, but Friday's reports showcase the danger of a new front in the two countries' confrontation.
"Around April, May time, the main sticking point was the enforcement mechanism - but we have retreated miles from that at this point".
That in turn hit chip-related shares in Asia such as Samsung Electronics, SK Hynix and Tokyo Electron.
The damage is already evident as Micron Technology Inc, a major Huawei supplier, forecast first-quarter profit below Wall Street targets, pushing its share prices down 7% in after-hours trade.
Bloomberg TV said the discussion is part of the broader US conflict with China and a safeguard to USA investors.
However, big players on the stock market saw their share prices fall following Friday's reports.
In a volatile session, Brent crude futures lost 79 cents to $61.95 a barrel.