Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

GLOBAL MARKETS-Stocks dip as report China wants more trade talks tempers optimism

Published 2019-10-14, 07:21 a/m
Updated 2019-10-14, 07:30 a/m
GLOBAL MARKETS-Stocks dip as report China wants more trade talks tempers optimism

GLOBAL MARKETS-Stocks dip as report China wants more trade talks tempers optimism

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

* China wants more talks before signing initial trade deal - BBG

* China trade data add to signs of weakness in economy

* Asian stocks gain, European shares fall

* Wall Street futures down 0.4%

By Ritvik Carvalho

LONDON, Oct 14 (Reuters) - A global index of stock markets dipped on Monday as a report that China wants more talks before signing a "Phase One" trade deal with the United States tempered an initial burst of optimism that followed signs of progress last week.

Stock markets in Asia cheered U.S. President Donald Trump's outlining the first phase of an agreement to end a trade war with China and suspending a threatened tariff hike data showing a further contraction in Chinese imports and exports in September and a Bloomberg report that China wants further talks with the U.S. before signing Trump's Phase One deal hit risk sentiment in Europe. pan-European STOXX 600 index .STOXX was down nearly 1% by midday in London. Germany's DAX .GDAXI , dominated by companies exposed to China, slipped 0.7%. All European country indexes were in the red. .EU

MSCI's All-Country World Index .MIWD00000PUS , which tracks shares across 47 countries, was down 0.1% on the day.

The emerging trade deal, covering agriculture, currency and some aspects of intellectual-property protection, would represent the biggest step by the two countries in 15 months. But investors advised caution.

"While a positive development, we are not absolutely certain that this marks the start of a clear de-escalation of the trade dispute," said Mark Haefele, chief investment officer at UBS Global Wealth Management. A number of issues were unresolved or unclear, in his view.

"A delay to the scheduled December tariffs was not announced, although that's likely if a deal is reached, and the state of provisions on intellectual property, forced technology transfer, and Chinese state subsidies, the most difficult aspects of the negotiations, are still unclear."

Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day.

Australia's main index gained 0.54% .AXJO and South Korea .KS11 rose 1.11%. Shanghai blue chips .CSI300 added 1%.

E-Mini futures for the S&P 500 ESc1 were down 0.2% after rising on Friday.

The drag from the trade war was a major reason Singapore's central bank eased monetary policy on Monday for the first time in three years. Data showed the city-state's economy had only narrowly dodged recession. WEEK FOR BREXIT The progress on trade was still enough to hit safe-haven bonds. Yields on U.S. 10-year Treasury notes rose to 1.7530% US10YT=RR .

The yield curve also steepened as short-term rates were held down by news the Federal Reserve would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system. fading rally in risk assets as European markets opened saw the Japanese yen regain ground against the dollar. The currency was 0.3% higher to the dollar at 108.03 JPY= .

The dollar .DXY gained 0.15% against a basket of currencies.

Sterling fell over half a percent to $1.2550 GBP= , retreating from a 15-week high of $1.2708 on Friday on optimism Britain could reach a deal on Brexit with the European Union.

A Brexit deal was hanging in the balance on Monday after diplomats indicated the EU wanted more concessions from Prime Minister Boris Johnson and that a full agreement was unlikely this week. gold gained 0.4%, last trading at $1,494.68 per ounce XAU= .

Oil prices fell more than 2%. O/R Brent crude LCOc1 futures fell 2.23% to $59.16 a barrel. U.S. crude CLc1 lost 2.23% to $53.48 a barrel.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.