Investors eye US-China meet
singapore — World markets were subdued on Friday and the price of oil dropped as investors look ahead to a meeting between US President Donald Trump and Chinese President Xi Jinping, who will attempt to ease a vicious trade dispute.
Trading was thinned as US markets were set to open for only a half day after Thanksgiving.
In Europe, Germany’s DAX index was 0.2 per cent higher at 11,156 and France’s CAC 40 rose 0.1 per cent to 4,944. The FTSE 100 index of leading British shares was flat at 6,958. US stocks were poised for a downbeat open after Thanksgiving. Futures for the broad S&P 500 index were down 0.4 per cent while Dow futures shed 0.5 per cent.
South Korea’s Kospi shed 0.6 per cent to 2,057.48. Hong Kong’s Hang Seng index dropped 0.4 per cent to 25,927.68 and the Shanghai Composite gave up 2.5 per cent to 2,579.48. Australia’s S&P/ASX 200 bucked the trend, adding 0.4 per cent to 5,716.20. Shares fell in Taiwan but rose in Singapore, Thailand and Indonesia. Japanese markets were closed for a holiday.
Trump and Xi will meet at the Group of 20 summit in Argentina next week. The leaders are hoping to unwind a spiralling dispute over Beijing’s technology policy and trade practices. Traders will be looking out for more progress on Brexit.
“The highlight for the week ahead is with little doubt the meeting between the head of states of the US and China at the sidelines of the G-20 meeting,” Jingyi Pan of IG said in a market commentary. “The result of the meeting into the end of next week is anybody’s guess and certainly a reason to drive markets regardless of the outcome,” she added.
The dollar fell to ¥112.83 from ¥112.95 late on Thursday. The euro weakened to $1.1383 from $1.1403. The pound eased to $1.2852 from $1.2879.
Gold fell as the dollar regained momentum and an improvement in risk sentiment lifted stock markets in Europe, denting bullion’s appeal. Spot gold was 0.4 per cent lower at $1,221.92 per ounce at 1130GMT. US gold futures for December delivery fell 0.47 per cent to $1,222.10 per ounce. —