Oil down 1% on riSing inventorieS
singapore — World markets retreated on Thursday after US and Chinese officials wrapped up three days of trade talks in Beijing without significant breakthroughs.
In Europe, Germany’s DAX dipped 0.1 per cent to 10,881 while France’s CAC 40 was 0.5 per cent lower at 4,789. Britain’s FTSE 100 was 0.1 per cent lower at 6,901. Wall Street was set for losses at the open with Dow futures and the broader S&P 500 futures down 0.4 per cent.
Japan’s Nikkei 225 index, which gained more than 1 per cent on Wednesday, fell 1.3 per cent to 20,163.80. The Kospi in South Korea dropped 0.1 per cent to 2,063.28. Hong Kong’s Hang Seng recovered from early losses, adding 0.2 per cent to 26,521.43. The Shanghai Composite index lost 0.4 per cent to 2,535.10. Australia’s S&P ASX 200 rebounded to gain 0.3 per cent to 5,795.30. Shares fell in Taiwan but rose in Singapore, Indonesia and the Philippines.
The Abu Dhabi index inched up 0.2 per cent. Dubai’s index also gained 0.2 per cent. India’s Nifty50 declined by 33.55 points or 0.31 per cent to settle at 10,821.60. The Sensex closed at 36,106.50, lower by 106.41 points or 0.29 per cent.
Official statements released after the US-China talks, which lasted a day longer than planned, did not say if progress was made on ending a tariffs battle that has shaken financial markets. China’s Ministry of Commerce said there were “detailed exchanges” and both sides would “maintain close contact”, without offering specifics. A statement from the Office of the US Trade Representative said negotiators will “report back to receive guidance on the next steps”. The talks come after Presi- LONDON — Oil prices fell about 1 per cent on Thursday as no clear signs of a resolution emerged from US-Chinese trade talks and official data again highlighted vast fuel stocks in the United States.
Brent crude was down nearly 1 per cent, or 60 cents, to $60.84 per barrel at 1400GMT. US crude was at $51.65 per barrel, down 71 cents or 1.4 per cent. Both benchmarks rose by around 5 per cent the previous day, capping off a week-long climb that marked oil’s longest sustained rise since last summer.
dents Donald Trump and Xi Jinping met and agreed to hold off on more tariffs for 90 days, on the sidelines of the G20 summit in Argentina last month. Investors are hopeful that more and higher-level talks will follow.
“While there was agreement on less thorny issues such as agriculture
and energy, US demands for verification and enforceable targets on intellectual property rights, transfer of technologies and nontariff barriers may not be that easily addressed,” DBS Group Research strategists Eugene Leow and Neel Gopalakrishnan said in a commentary. Traders are also mulling over the minutes of December’s Federal Reserve meeting, which were released on Wednesday.
They showed officials believe the central bank could be “patient” about future rate hikes, given current market volatility, trade tensions and shaky global growth. The Fed now plans two hikes in 2019, down from three. But analysts believe that it may raise rates just once this year if economic growth slows.
Spot gold was little changed at $1,292.95 per ounce as of 1256GMT. US gold futures gained 0.2 per cent to $1,294.40 per ounce.
The dollar eased to ¥108.01 from ¥108.15 late on Wednesday. The euro weakened to $1.1529 from $1.1543. India’s rupee weakened to 70.54 per dollar after closing at 70.46. —