Global stocks give up US-China trade truce gains
london — Global stock markets gave up on Tuesday many of the gains they recorded in the previous session when a 90-day trade tariff truce between the US and China shored up investor sentiment.
In Europe, Germany’s DAX was down 0.8 per cent to 11,377 while France’s CAC 40 fell 0.8 per cent to 5,016. The FTSE 100 index of leading British shares was also 0.8 per cent lower at 7,005.
The Dow Jones Industrial Average fell 73.87 points, or 0.29 per cent, at the open to 25,752.56. The S&P 500 opened lower by 7.94 points, or 0.28 per cent, at 2,782.43. The Nasdaq Composite dropped 33.57 points, or 0.45 per cent, to 7,407.95. Japan’s Nikkei 225 index gave up 2.4 per cent to 22,036.05 and the Kospi in South Korea lost 0.8 per cent to 2,114.35. Hong Kong’s Hang Seng added 0.3 per cent to 27,260.44. The Shanghai Composite index picked up 0.4 per cent to 2,665.96. The S&P ASX/200 in Australia gave up 1 per cent to 5,713.10.
“This may be a little harsh as a deal isn’t necessary in the 90-day window, the two sides just need to agree on the parameters of a future deal,” said Craig Erlam, senior market analyst at Oanda. “Whether this will happen is certainly up for debate but I do believe that this is a positive step forward from where we were prior to the meeting and that’s the important thing.”
The pound spiked higher after a top official at the European Union’s highest court advised that Britain can unilaterally change its mind about leaving the EU. The pound was up 0.7 per cent at $1.2811.
The euro was up 0.4 per cent at $1.1399 while the dollar fell 0.8 per cent to 112.78 yen. —
This is a positive step forward from where we were prior to the [USChina] meeting and that’s the important thing
Craig Erlam, Senior market analyst at Oanda