Global financial markets have been looking for a reason to sell off from recent nose bleed levels; it looks as though they have found a catalyst.

The latest round of US-China trade talks may have hit an impasse, raising doubts about the chances of an early trade deal between the world's two leading economies, Chinese official media reported on Thursday, reported Outlook India.

U.S. equities were down about one percent on the European close.

Speaking of The White House's recent comments on the negotiations, Huo Jianguo, vice chairman of the China Society for World Trade Organisation Studies said, "This is very vague and shows that some tough issues still have to be discussed.

"I think it reflects the fact that we are at the final stage of the negotiations and things are a lot more difficult at this stage."

• Q1 Non-farm Up, Factory Orders Up, Durable Goods as Forecast
• Private Payrolls Up, Non-Farm Upcoming, Fed Delivers Dove Trap