Global markets are mixed ahead of the forthcoming G20 summit | Finance and Markets

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Global markets are mixed on Monday ahead of the forthcoming G20 summit in Japan, during which the US and Chinese presidents will talk in order to reach a trade agreement between the two largest economies in the world.

However, the Wall Street Journal reported that the US administration is checking whether to ban the usage of Chinese-manufactured equipment for its next-generation 5G network.

On the other hand, tensions between the United States and Iran continue to grow after Tehran shot American intelligence drone, leading to acute threats by US President Donald Trump. The US administration also accused Iran of attacking two oil tankers near the Strait of Hormuz – a critical transport route for the global oil market.

Tehran warned that any conflict in the Gulf region could grow irresistibly.

On Friday, Trump said he had canceled a military strike against Iran, citing information that such an operation could have killed 150 people.

Asian markets recap

The main stock indexes on the Asia-Pacific region ended the first session of the week with slight increases despite growing tensions between the United States and Iran over the shot of unmanned US aircraft during the past week.

In Shanghai, the mainland index Shanghai Composite added 0.21% to 3,009.15 points. The Hong Kong’s benchmark Hang Seng advanced by 37.78 points, or 0.13%, to 28,511.49 points.

Shanghai composite

In Japan, the local blue-chip index Nikkei 225 reported a 0.13% growth to 21,285.99 points. The shares of Nomura Holdings rose by 0.26% after it became clear that the investment bank’s management obtained approval from shareholders for the re-appointment of Chief Executive Officer Koji Nagai.

South Korean index Kospi recorded a slight growth of 0.03% to 2,126.33 points.

In Australia, the S&P ASX 200 rose by 0.22% to 6,665.40 points. Central Bank Governor Philip Lowe said that “it would be reasonable to question the effectiveness of global monetary policy to stimulate economic growth”, though Australia is set to lower its interest rates. The Australian central bank said it could cut its key interest rate by 25 basis points to 1.25%.

European markets mid-session recap

European stocks stumbled and the US dollar dropped to three-month lows on Monday as hopes waned for progress in Sino-American trade talks at this week’s G20 meeting and fears grew of a confrontation with Iran.

The pan-European STOXX 600 fell by 0.15% to 384.18 points, reflecting losses in Paris and Milan, but the negative market sentiment spread accord the continent.

German index DAX 30 edged lower by 64.19 points, or 0.52%, to 12,275.73 points at 09:50 GMT. The IFO Business Climate and Current Assessment beat the market estimates, rising to 97.4 points and 100.8 points, respectively. However, the expectations worsened and market sentiment deteriorated. The stocks of automaker Daimler collapsed by 4.5% after the company slashed its 2019 profit expectations by hundreds of millions of euros due to the diesel scandal. The negative news pushed the stocks of other carmakers down with Volkswagen and BMW losing about 1%. The stocks of financial companies were also deep into the red with Deutsche Bank falling by 1.6%, while Commerzbank declining by 0.7%. Meanwhile, the therapeutic antibody company Morphosys climbed more than 6% after presenting promising primary analysis data from a clinical trial.

DAX 30

French index CAC 40 is down by 0.20% to 5,517.31 points. The stocks of carmakers Peugeot and Renault are trading down by 0.97% and 0.59%, respectively, while banks Societe Generale and BNP Paribas wiped out 1.95% and 0.95% of their market value. The shares of European aircraft manufacturer Airbus are up by 0.3%.

British index FTSE 100 is almost unchanged at mid-session trading at 7,406.81 points. The oil major Shell fell slightly by 0.2%, while BP is down by 0.56%. Thor Mining PLC was 13% higher at 0.875p after it said lab tests have affirmed the good tungsten grades from its drilling program at Bonya in Northern Territory, Australia. Carnival Corporation, which sounded the earnings horn last week, navigated more choppy waters with shares in the cruise line group sinking 2.4% early on.

Wall Street pre-session recap

Wall Street stock index futures were higher Monday morning, as traders monitor geopolitical tensions, in particular between the United States and Iran.

At around 06:10 a.m. ET, Dow futures rose 51 points, indicating a positive open of more than 40 points. Futures on the S&P and Nasdaq were both seen marginally higher.

On the data front, the calendar is thin with Dallas Fed manufacturing data due at 10:30 a.m. ET.