Global stocks are mostly lower on Wednesday amid negative economic news from Europe. Last night the stocks received a strong impetus on the back of US President Donald Trump’s delay to further tariffs on Chinese imports. Asian stocks were mostly higher, but investors’ sentiment worsened during European trading.
The United States Trade Representative announced Tuesday that certain products including clothing and cellphones were being removed from the tariff list based on “health, safety, national security and other factors” and will not face additional tariffs of 10%. Other tariffs will be delayed to December 15 from September 1 for certain articles, it said.
President Donald Trump said Tuesday that the move was designed to avoid any potential impact on holiday shopping ahead of Christmas season. He added China would very much like to make a trade deal.
Asian markets recap
Markets in the Asia-Pacific region ended the stock trading session on Wednesday mostly with gains after the US authorities announced yesterday that they were postponing the imposition of new tariffs on Chinese imports to mid-December.
In China, the mainland index Shanghai Composite rose by 0.42% to 2,808.91 points. For its part, the Shenzhen Component added 0.72% to 8,966.47 points, while Shenzhen Composite gained 0.69% to 1,509.00 points. On Tuesday, the Office of the United States Trade Representative announced that President Donald Trump’s administration is postponing the imposition of a new tariff on mobile phones, laptops, toys, and other products until December 15. Some products will be finally removed from the duty lists, the service said.
Meanwhile, Hong Kong’s index Hang Seng also managed to move to positive territory with 0.03% growth to 25,288.61 points. Tensions remain high in the city because of ongoing protests that are hampering the international airport for the second consecutive day.
In Japan, the blue-chip index Nikkei 225 marks a more significant increase, adding nearly 1% to 20,655.13 points. The Topix benchmark also advanced by 0.87% to 1,499.50 points. The stocks of Taiyo Yuden added 6.3%, while those of Murata Manufacturing rose by 3.33%. Japan Display, for its part, fell by more than 4.6% after the manufacturer announced its tenth consecutive quarterly loss last week.
In South Korea, the Kospi index advanced by 0.65% to 1,938.37 points, while the Australian S&P ASX 200 added 0.42% to 6,595.90 points. LG Display shares rose by about 1.6%.
European markets mid-session recap
European stocks traded lower Wednesday as weak German and Eurozone GDP data reversed the previous session’s rally on the back of US President Donald Trump’s delay to further tariffs on Chinese imports. The pan-European Stoxx 600 was down 1.1% by mid-morning, autos taking a 2% hit as the majority of sectors and all major bourses traded in the red.
German index DAX 30 wiped out 178.29 points, or 1.52%, to 11,571.84 points at 11:00 GMT. The country’s GDP (gross domestic product) shrank by 0.1% between April and June, fueling fears of a recession for Europe’s largest economy and likely denting investor sentiment. The stocks of carmakers suffered much with Volkswagen losing 2.2% and Daimler falling by 2.5%. The shares of BASF sank by 1.7%.
French index CAC 40 edged lower by 1.43% to 5,286.56 points. The stocks of financial companies Societe Generale and BNP Paribas sank deep into the red, wiping out 3.3% and 2.1%, respectively. Carmakers also fell significantly with Peugeot losing 2.6% and Renault declining by 3.6%.
British index FTSE 100 lost 1.03% to 7,176.64 points. Balfour Beatty Plc shares jumped 9% after the British infrastructure company reported higher first-half underlying pretax profit and increased its annual cash forecast. Cybersecurity firm Avast jumped 8.4% after it said revenue growth would be at the upper end of its target, driven by demand for products such as “AntiTrack” that help secure users privacy. Sports Direct lost 5.2% after the retailer said its auditor Grant Thornton had quit, a move that left the company struggling to find a replacement.
Wall Street pre-session recap
Wall Street stocks were set to open lower Wednesday morning, giving back some of Tuesday’s solid gains, after the US bond market flashed a troubling signal about the US economy.
Futures on Dow Jones Industrial Average indicated a negative open of about 189 points. Futures on the S&P 500 and Nasdaq Composite were both lower, as well.
Investors will focus on import and export prices for July will be released at around 8:30 a.m.
In corporate news, Tencent, Macy’s, and Canada Goose are among some of the companies expected to report their latest quarterly results before the opening bell.