Global stocks are mostly on the uptrend on Friday at the end of a bruising week in which escalating trade tensions weighed on investors.
The negative turnaround in US-Chinese trade relations has had an impact on markets. China is ready to support its private companies instead of bending over US financial pressure. Because the two countries will negotiate only on their own terms, it may take years before they can reach a good deal of understanding.
Beijing and Washington have imposed tariffs on goods worth billions of dollars since last year. The trade tension has rocked the financial markets and lowered the attitudes of the business. The situation escalated earlier this month amid hopes for reaching an agreement in near future.
Last week, US indexes dropped as investors were worried that the trade war could last much longer than expected. Data released yesterday also showed that industrial output in the largest economy in the world grew in May at its slowest pace since September 2009.
Asian markets recap
The main stock indexes on the Asia-Pacific were mixed on Friday, as worries about trade tensions between the US and China were tilting investors’ attitudes.
In China, the mainland indexes went in different directions, with Shanghai Composite rising by 0.2% to 2,852.99 points, while the Shenzhen Composite fell by 0.48%. The Hong Kong’s index Hang Seng added 0.41% late in the afternoon and ended the session at 27,381.31 points.
In Japan, the blue-chip index Nikkei 225 wiped out 0.16% of its value to a level of 21,117.22 points, while Topix achieved a slight increase to a level of 1,541.21 points.
The South Korean index Kospi dropped by 0.69% to a level of 2,045.31 points.
The Australian index S&P ASX 200 dropped by 0.55% to 6,456 points, while the financial index was down 0.45%.
European markets mid-session recap
German index DAX 30 inched higher by 100 points, or 0.84%, to 12,052.81 points at 09:00 GMT. The stocks of carmakers recovered on Friday after the sharp losses during the previous session with Daimler and Volkswagen adding more than 1%. The shares of the software giant SAP added 1%, while the chemical giant BASF appreciated by 1.2%. The financial sector is slightly down with Deutsche Bank falling by 0.7% and Commerzbank declining by 0.2%.
French index CAC 40 is rising by 0.87% to 5,327.23 points at mid-session trading. The stocks of carmakers Renault and Peugeot inched higher by 0.8% each, while aircraft manufacturer Airbus added 1.4%. The financial sector is gaining momentum with Societe Generale and BNP Paribas adding 1.2% each.
British blue-chip index FTSE 100 added 0.62% to 7,276.05 points recovering almost half of yesterday’s losses. Informa PLC, the publisher and exhibitions organiser, outperformed the index, rising 1.6% after a reassuring trading update released ahead of the company’s annual general meeting today. National Grid PLC was up 0.8% after expressing pleasure that Ofgem has refined its approach to incentives but remains disappointed with the proposed cost of equity range.
Wall Street pre-session recap
The US stock index futures were higher on Friday morning, as market participants continue to monitor trade tensions between the world’s two largest economies. The slight rise would be a rebound from Thursday’s heavy losses.
At around 05:30 a.m. ET, Dow futures rose by 144 points, indicating a positive open of more than 121 points. Futures on the S&P and Nasdaq were both higher, indicating a positive open by 14 points and 31 points, respectively.
In terms of data, the calendar is thin with only durable goods numbers out at 8:30 a.m. ET. In corporate news, Foot Locker is due to report before the bell.