· Wall Street edged lower on Monday as uncertainties following recent U.S.-China trade negotiations clouded sentiment and investors turned their focus on the third-quarter earnings season, which begins in earnest on Tuesday.
The Dow Jones Industrial Average .DJI fell 29.23 points, or 0.11%, to 26,787.36, the S&P 500 .SPX lost 4.09 points, or 0.14%, to 2,966.18 and the Nasdaq Composite .IXIC dropped 8.39 points, or 0.1%, to8,048.65.
Hopes dimmed that recent trade negotiations between the United States and China would bear fruit, as China indicated further talks were needed and U.S. Treasury Secretary Steven Mnuchin said the next round of tariffs on Chinese imports are on track to go into effect on Dec. 15 if a deal has not been reached by then.
· European stocks closed lower Monday as traders tracked developments in a crucial week for Brexit, while details of the partial trade accord between the U.S. and China remained hazy.
The pan-European Stoxx 600 closed provisionally down around 0.5%, with basic resources stocks shedding over 2% to lead losses as almost all sectors and major bourses traded in negative territory.
The U.S. agreed to postpone an increase in tariffs from 25% to 30% on at least $250 billion of Chinese goods, which had been scheduled for Tuesday. President Donald Trump said that the first phase of a trade deal will be drawn up within the next three weeks, and will see China purchasing between $40 billion and $50 billion of U.S. agricultural products.
China wants to conduct another round of talks before signing phase one of the proposed deal, a source told CNBC’s Kayla Tausche on Monday. An initial report from Bloomberg News said that China also wants the U.S. to scrap a tariff hike planned for December.
Back in Europe, investors will be monitoring a big week for Brexit. The Queen’s Speech, Britain’s official state opening of Parliament, on Monday set out the U.K. government’s plans under Prime Minister Boris Johnson.
The BBC reported Monday that the U.K. and the European Union are still divided on customs arrangements as they look to hammer out a deal for Britain’s departure before the October 31 deadline.
· Asia Pacific markets traded cautiously on Tuesday, following the previous day’s rally, as new doubts emerged overnight about the partial U.S.-China trade deal.
In South Korea, the Kospi index rose fractionally higher to 2,067.92. Japan’s Nikkei 225 jumped 1.33% after Japanese markets were closed Monday for a public holiday. The Topix index added 1.31%.
Australia’s ASX 200 retraced early losses to trade up 0.05%. The heavily weighted financial subindex reversed declines to trade up 0.29% while the energy sector fell 0.57% and materials was down 0.96%.
Overnight, stocks closed slightly lower on Wall Street and declined in major European markets.
Reference: CNBC, Reuters
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