World Shares Waver in Monday Trade 06/24 06:24
Shares wobbled Monday as investors watched for movement in the China-U.S.
trade dispute ahead of a meeting between Presidents Donald Trump and Xi Jinping
planned for later this week in Osaka, Japan, at the Group of 20 summit.
BANGKOK (AP) -- Shares wobbled Monday as investors watched for movement in
the China-U.S. trade dispute ahead of a meeting between Presidents Donald Trump
and Xi Jinping planned for later this week in Osaka, Japan, at the Group of 20
Oil prices rose as uncertainties over U.S. tensions with Iran mounted, with
Secretary of State Mike Pompeo saying he wants to build a global coalition
against Tehran. That followed a week when Washington pulled back from the brink
of a military strike on Iran.
Germany's DAX slipped 0.5% to 12,277.54 while the CAC 40 in France lost 0.2%
to 5,518.94. The FTSE in London was flat, at 7,407.46. Wall Street looked
poised for a rally, however, with the future contract for the Dow Jones
Industrial Average picking up 0.2% to 26,751.00. That for the S&P 500 also
gained 0.2% to 2,957.00.
In Asia, the biggest uncertainty looming over the market was the U.S. trade
war with China. Stocks mostly have rallied since Trump said he planned to meet
with Xi, though Wall Street finished its milestone-setting week on a downbeat
note on Friday as a late flurry of selling nudged stocks lower and snapped a
four-day winning streak.
Japan's Nikkei 225 index gained 0.1% to 21,285.99, while in Hong Kong the
Hang Seng also added 0.1% to 28,513.00. The Kospi in South Korea edged less
than 0.1% higher to 2,126.33. Australia's S&P ASX 200 picked up 0.2% to
6,665.40 and the Shanghai Composite index added 0.2% to 3,008.15. Shares fell
in Southeast Asia and Taiwan.
Potentially complicating the talks with Xi, on Friday, the U.S. announced it
was blacklisting five Chinese organizations involved in supercomputing with
military-related applications, citing national security as justification for
denying its Asian geopolitical rival access to critical U.S. technology.
The five blacklisted organizations placed on the so-called Entity List
include supercomputer maker Sugon, which is heavily dependent on U.S. suppliers
including chipmakers Intel, Nvidia and Advanced Micro Devices.
The other four are the Wuxi Jiangnan Institute of Computing Technology and
three Sugon affiliates. The Commerce Department called their activities
"contrary to the national security and foreign policy interests of the United
This latest move has left market sentiment in limbo, analysts said.
"The Trump administration's further blacklisting of five Chinese tech
companies ahead of the G-20 meeting had perhaps not been the best piece of news
for markets with sentiment hinging on U.S.-China trade relations," Jingyi Pan
of IG said in a commentary.
"That said, neither had things taken any significant step for the worse
within the market," she said.
On Wall Street, even with the modest losses Friday the market delivered its
third straight weekly gain.
The major U.S. stock indexes are up more than 7% so far this month and are
holding on to gains of more than 14% for the year.
Investors have been reassured by statements from the Federal Reserve this
month that suggest the central bank is prepared to cut interest rates in
response to a slowing global economy. At the same time, traders remain
concerned that corporate profits might suffer should the kind of economic
slowdown that would prompt the Fed to cut rates take hold.
Benchmark crude oil picked up 41 cents to $57.84 per barrel in electronic
trading on the New York Mercantile Exchange. It rose 0.6% to settle at $57.43 a
barrel on Friday, ending with a 9.2% gain for the week, the biggest weekly gain
in more than two years. Only a few weeks ago, the price of U.S. crude was in a
correction, what Wall Street calls a drop of at least 20% from a recent peak.
Brent crude oil, the international standard, climbed 7 cents to $64.52 per
The dollar rose to 107.38 Japanese yen from 107.30 yen on Friday. The euro
climbed to $1.1386 from $1.1371.