· Global equity markets edged higher on Monday, lifting prices of U.S. government debt, as a 90-day extension allowing U.S. companies to do business with China’s Huawei eased the latest spike in investor angst over U.S.-Sino trade tensions.
On Wall Street, the Dow Jones Industrial Average .DJI rose 31.33 points, or 0.11%, to 28,036.22. The S&P 500 .SPX gained 1.57 points, or 0.05%, to 3,122.03 and the Nasdaq Composite .IXIC added 9.11 points, or0.11%, to 8,549.94.
The three major U.S. stock indexes set closing highs for a second straight session, while MSCI’s gauge of world equity markets also edged up to less than 1% from a record peak set in January 2018.
The stock rally reversed early losses sparked by conflicting reports about the outlook for ending the 16-month trade war between the world’s two largest economies that has weighed on global growth and roiled capital markets.
The U.S. Commerce Department added Huawei Technologies Co Ltd HWT.UL to an economic blacklist in May, citing security concerns, but has allowed it to purchase some American-made goods in a series of 90-day license extensions.
Early on Monday, a CNBC report cast fresh doubts on the prospects for phase one of a U.S.-China trade deal, saying the mood in Beijing was pessimistic due to President Donald Trump’s reluctance to roll back tariffs on Chinese imports.
· European stocks closed lower on Monday after a Chinese government source told CNBC that the mood in Beijing over a trade deal is pessimistic.
The pan-European Stoxx 600 ended the session 0.1% lower, with the China-exposed autos sector tumbling 2.3% while utilities bucked the trend to add almost 1%.
Sentiment turned cautious after CNBC’s Eunice Yoon reported that a Chinese government source had said Beijing was troubled by U.S. President’s Donald Trump’s reluctance to roll back tariffs, and may now wait to progress with a deal due to ongoing impeachment hearings and next year’s U.S. election.
· Stocks in Asia nudged lower in Tuesday morning trade amid concerns over the state of U.S.-China trade negotiations.
Japan’s Nikkei 225 shed 0.21% in early trade, with shares of index heavyweight and robot maker Fanuc dropping more than 1%. The Topix index also declined 0.14%. In South Korea, the Kospi slipped 0.49%.
The S&P/ASX 200 in Australia hovered around the flatline. Meeting minutes from the Reserve Bank of Australia are expected to be released around 8:30 a.m. HK/SIN.
Overall, the MSCI Asia ex-Japan index traded 0.1% lower.
Reference: CNBC, Reuters
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