NEW YORK, United States (AFP) — Global stocks were mixed Tuesday as investors digested strong bank earnings and monitored ongoing developments in the US-China trade war amid lingering unease over last week’s market gyrations.

Some stability has returned to markets after last week’s roller-coaster ride over Trump’s stop-start tariff announcements, but uncertainty remains over speculation of new levies on high-end technology and pharmaceuticals.

“While financial markets have steadied, with many looking as if they are consolidating at current levels, this feels as if it is the calm before the storm,” said David Morrison, senior analyst at financial services firm Trade Nation.

“Markets remain skittish, and investors feel safer sitting on their hands for now, hoping that last week’s worrying dislocations revert back to normal,” he said.

Wall Street stocks finished lower after two positive sessions.

A White House spokeswoman described the ball as being “in China’s court” in the trade war between Washington and Beijing.

“Will we have relief or progress with the trade tariff situation or is the situation going to get worse?” said Adam Sarhan of 50 Park Investments. “We don’t know. That question mark is leading investors to hold off from taking any big positions.”

Shares in Bank of America and Citigroup climbed after the financial giants posted solid earnings reports.

Boeing slumped as Trump said China “reneged” on a major deal with the US aviation giant, after Bloomberg reported that Beijing ordered airlines not to take further deliveries from the company amid an escalating trade war. Shares in European rival Airbus rose.

European indices closed higher, with London and Frankfurt gaining 1.4 per cent each.

Paris made more modest gains, weighed down by shares in Louis Vuitton owner LVMH falling almost eight per cent over weak sales. The group was overtaken by rival Hermes as France’s most valuable company by market capitalisation.

Shares in European and Asian automakers rallied following Trump’s comments on Monday that he was “very flexible” and “looking at something to help some of the car companies” hit by his 25 per cent tariff on all imports.

“This serves to double down on the weekend narrative that Trump will reverse some of his tariffs once company execs approach him to highlight the huge negative implications of his action,” said Joshua Mahony, chief market analyst at Scope Markets.

In Asia, Toyota jumped 3.7 per cent and Hyundai more than four per cent.

But in the United States, General Motors and Ford slumped.