The local share market is set to begin the day without much momentum, as trade tensions dominated global markets.

Markets at 8:10am (AEDT): ASX SPI futures +0.1pc at 5,739, ASX 200 (Tuesday's close) +1pc at 5,728

ASX SPI futures +0.1pc at 5,739, ASX 200 (Tuesday's close) +1pc at 5,728 AUD: 72.25 US cents, 56.73 British pence, 63.96 Euro cents, 82.2 Japanese yen, $NZ1.06

AUD: 72.25 US cents, 56.73 British pence, 63.96 Euro cents, 82.2 Japanese yen, $NZ1.06 US: Dow Jones +0.4pc at 24,749, S&P 500 +0.3pc at 2,682, Nasdaq flat at 7,083

US: Dow Jones +0.4pc at 24,749, S&P 500 +0.3pc at 2,682, Nasdaq flat at 7,083 Europe: FTSE 100 -0.3pc at 7,017, DAX -0.4pc at 11,309, CAC -0.2pc at 4,983, Euro Stoxx 50 -0.1pc at 3,168

Europe: FTSE 100 -0.3pc at 7,017, DAX -0.4pc at 11,309, CAC -0.2pc at 4,983, Euro Stoxx 50 -0.1pc at 3,168 Commodities: Brent crude +0.2pc at $US60.60/barrel, spot gold -0.7pc at $US1,214.36/ounce, iron ore +1.5pc at $US65.19/tonne

Meanwhile, the Australian dollar was steady at 72.25 US cents.

It has also lifted slightly to 63.96 euro cents, but jumped to 56.73 British pence.

This was due to a sharp fall in Britain's currency — after US President Donald Trump appeared to suggest it might be difficult for Britain to negotiate a free-trade deal with the US after it withdraws from the European Union.

"Right now if you look at the deal, [the UK] may not be able to trade with us," Mr Trump told reporters outside the White House.

"And that wouldn't be a good thing. I don't think they meant that."

In the banking royal commission, AMP's acting chief executive Mike Wilkins is back in the witness box from 10:00am (AEDT).

Mr Wilkins was forced to explain how his company charged customers hundreds of millions of dollars for financial advice they never received, and why it is taking up to 17 years to compensate them.

AMP's chief is expected to be grilled for the first hour before ANZ boss Shayne Elliott takes his turn.

Trade tensions subdue markets

Investors are looking out for this weekend's highly anticipated meeting between Mr Trump and Chinese President Xi Jinping at the G20 summit in Argentina — and whether they take any concrete steps to resolve their countries' trade dispute.

On European markets, London (-0.3pc), Frankfurt (-0.4pc) and Paris (-0.2pc) ended their trading sessions lower.

Wall Street experienced some major swings throughout its day, with the Dow Jones index falling by more than 200 points at the start.

This was after Mr Trump told The Wall Street Journal it was "highly unlikely" he would accept Beijing's request to hold off on increasing the amount of tariffs (on Chinese imports) from January 1.

He also repeated his threat to slap tariffs on all remaining imports from China.

"The only deal would be China has to open up their country to competition from the United States," Mr Trump said.

"As far as other countries are concerned, that's up to them.

"If we don't make a deal, then I'm going to put the $US267 billion additional on," at a tariff rate of either 10 per cent or 25 per cent, he said.

However, US markets recovered after White House economic adviser Larry Kudlow made some mildly positive comments about the upcoming trade talks.

"Their responses have disappointed because ... we can't find much change in their approach," he said about negotiations with Beijing so far.

He then said that the upcoming discussions between the US and Chinese leaders are an opportunity to "turn the page" on the trade war.

After those soothing words, the Dow rose by 108 points, or 0.4 per cent, to close at 24,748.

The benchmark S&P 500 finished 0.3 per cent higher at 2,682.

However, the tech-heavy Nasdaq index was flat at 7,083.

ABC/Reuters