Market sentiment worsened against lowering the likelihood for the US-China trade deal. Most of the markets in Asia and Europe are trading is red, while Wall Street futures are down, indicating a negative start of the session.
Serious concern among investors has brought the news that a meeting between President Donald Trump and Chinese leader Xi Jinping will not happen until March when expires the trade truce and hopes for a trade agreement. In the absence of a deal, additional US customs tariffs on Chinese goods will get into force.
White House Economic Adviser Larry Kudlow said on Thursday that China and the United States are still far from a trade deal.
The US Treasury Secretary Steven Mnuchin and other US officials will travel to Beijing next week to continue the negotiations after US President Donald Trump and Chinese President Xi Jinping agreed to a 90-day tariff truce in December.
Asian markets recap
Most stock exchanges in Asia have reacted negatively to growing concerns about the trade talks between the US and China.
Japanese blue-chip index Nikkei 225 wiped out 2.01% of its value to 20,333.17 points. The stocks of Sony, however, rose by 4.1% after the company announced its first 910 million USD shares redemption.
South Korean index Kospi moved to the red territory by 1.20% to 2,177.05 points.
In Hong Kong, the index Hang Seng decreased by 0.16% after a long break around the Lunar New Year. Shares of the Tencent technology company fell by 0.52%. In the mainland of China, Shanghai Composite managed to rise by 1.30%. Market support came from a published project by the China Securities Regulatory Commission to take measures to open the country’s capital markets and attract more foreign capital. One of the ideas envisages that foreign financial institutions will have access to derivatives and options.
In Australia, the local index S&P ASX 200 declined by 0.34%. The energy sub-index fell by 2.63% due to the depreciation of oil on international markets. Santos, Woodside Petroleum and Beach Energy recorded a drop in their share price by 4.37%, 1.67%, and 9.67%, respectively.
The stocks of Indian carmaker Tata Motors fell by more than 18% after the company posted its highest loss for the last quarter.
European markets mid-session recap
German stocks were moving in a narrow range on Friday as worries about slowing global growth and the US-China trade dispute sapped investors’ appetite for riskier assets. The benchmark DAX 30 was virtually unchanged at 11,023.88 points at 11:10 GMT after plunging 2.7% in the previous session. Wirecard, a provider of payment solutions, rallied 2.9%. Leoni fell as much as 25% after proposed to suspend dividend amid incurring a negative EBIT of 19 million EUR for the fourth quarter of the financial year 2018. The lender Commerzbank was marginally lower while Deutsche Bank fell over 1% amid allegations that it helped launder money on behalf of Russian customers.
French stocks are slightly up today with CAC 40 rising by 0.24% to 4,997.69 points at mid-session. The stocks of Air France KLM fell by 2.5% despite reporting a rise in passenger traffic for January. The shares of aircraft manufacturer Airbus rose over 1% despite Qantas’s decision to cancel eight of the 20 A380s.
British blue-chip shares staged a tentative recovery on Friday from their worst day in six weeks a day earlier, led by gains in banks and miners, even as weak earnings dragged on utilities, SSE and Centrica, and Johnson Matthey. The index FTSE 100 appreciated by 0.1% to 7,100.66 points at mid-session on Friday. Bank stocks were higher after slipping in the previous session, but RBS was 1.3% lower a day after a report that the British government would consider trimming its stake in the bank. Luxury brand Burberry added 1.2%, boosted by French luxury handbag label Hermes’ results and comments that said sales momentum in its Chinese stores stayed strong in the fourth quarter.
Wall Street pre-session recap
Wall Street stock index futures were lower Friday morning, with market participants increasingly worried about a broadening global economic slowdown.
At around 6:30 a.m. ET, Dow Jones Industrial Average futures slipped 84 points, indicating a negative open of more than 89.53 points. Futures on the S&P 500 and Nasdaq Composite were also down, indicating negative opening by 10.20 points and 38.98 points.