Global stocks up ahead of Trump-Kim meeting
beijing — Global markets mostly rose on Monday as Donald Trump prepared to meet North Korean leader Kim Jong Un following the American president’s outburst at Canada’s prime minister over trade.
European markets were boosted by an Italian official’s declaration that the country has no intention of leaving the euro.
Germany’s DAX was up 0.4 per cent to 12,818 and Britain’s FTSE 100 gained 0.8 per cent to 7,743. Paris’s CAC 40 added 0.3 per cent to 5,464, while Italy’s FTSE MIB jumped 2.2 per cent to 21,820.
On Wall Street, the future for the Dow Jones industrial average was up 0.1 per cent and that for the Standard & Poor’s 500 index was flat.
“The far from harmonious Quebec summit confirmed deep-seated G-6+1’s expanding policy fissures on a plethora of significant concerns including climate change, the Iran nuclear deal and of course trade,” Stephen Innes of currency trader Oanda said in a report.
“The Trump-Kim summit is the massive event that has a far-reaching regional implication. While the markets had low expectations going into G-7, assumptions are running high, so if the talks somehow go sideways, there could be a reasonably aggressive regional risk-off move.”
Italy’s markets jumped higher after the economy minister said the country’s new populist government isn’t considering leaving the eurozone or adding to the high public debt load. The statement was the strongest yet on the topic from an official in the new government.
Markets had fallen sharply last month on concern that the new administration might consider pulling Italy out of the euro eventually or weakening its role in the currency.
Tokyo’s Nikkei 225 rose 0.5 per cent to 22,804.04 while the Shanghai Composite Index lost 0.5 per cent to 3,052.78. Hong Kong’s Hang Seng added 0.3 per cent to 31,063.70 and Seoul’s Kospi advanced 0.8 per cent to
The Trump-Kim summit is the massive event that has a far-reaching regional implication Stephen Innes, Currency trader, Oanda
2,470.15. India’s Sensex added 0.7 per cent to 35,689.79 while benchmarks in New Zealand and Southeast Asia also gained. Australian markets were closed for a holiday. Looking ahead, investors will be keeping an eye on key central bank meetings this week. The US Federal Reserve is expected to announce an interest rate Wednesday. On Thursday, the European Central Bank is expected to give more indications about whether it might bring forward a rate hike now expected in mid-2019. On Friday, the Bank of Japan is due to give its latest policy update.
The dollar rose to 110.00 yen from Friday’s 109.54 yen. The euro gained to $1.1786 from $1.1770.