Global stocks fell on Thursday as a historic summit ended without agreement on the denuclearization of the Korean Peninsula and weak Chinese data reinforced fears that the world’s second-largest economy is losing momentum. A summit between US President Donald Trump and the North Korean leader Kim Jong-un ended with no agreement after North Korea reportedly wanted all sanctions on it lifted in exchange, something the U.S. was not prepared to do.
China’s manufacturing sector contracted for a third consecutive month in February, rekindling investor worries over slowing growth.
Meanwhile, the investors continue to monitor the development of the India-Pakistan conflict. Chinese diplomats warned New Delhi and Islamabad to stop the escalation of tension to prevent the deterioration of the situation.
Asian markets recap
The main stock indexes in Asia-Pacific ended today’s trading session into the red on the background of geopolitical uncertainty. Only the Australian S&P ASX 200 succeeded to end with slight increases.
South Korean index Kospi declined by 39.35 points, or 1.76%, after it became clear that the meeting between Donald Trump and North Korean leader Kim Jong-un was interrupted shortly after its start because of disagreements over the issues, related to the sanctions against Pyongyang. The shares of Samsung Electronics and chip maker SK Hynix declined by 3.53% and 5.02% respectively. The stock of companies with potential exposure to North Korea also declined in value, and Hyundai Elevator posted a decline in its stock price of 18.55%. South Korean won appreciated by 0.42% against the US dollar.
On the Chinese markets, the continental index Shanghai Composite fell by 0.44% to 2,940.95 points, while the Hong Kong’s index Hang Seng reported a decline of 128.18 points, or 0.45%, to 28,629.26 points. The investors’ focus was also on the news about China’s production activity slowdown. This is the third consecutive month of slowing down against the fall in export orders, which have reached the levels of the financial crisis 10 years ago.
In Japan, the index Nikkei 225 fell by 171.35 points, or 0.79%, to 21,385.16 points. The shares of Toyota and Honda fell by 0.74% and 0.21% respectively.
The Australian index S&P ASX 200 managed to finish the session on green territory, adding 0.30% to its value, reaching a level of 6,169 points.
European markets mid-session recap
German index DAX 30 was down by 18 points, or 0.16%, at 11,468 points at 11:40 GMT. Zalando shares soared 17% after the online fashion retailer met its 2018 targets and said it expects solid growth this year. Lender Deutsche Bank slid half a percent and Commerzbank declined 0.7%.
The French index CAC 40 compensated earlier declined and it trading with a loss of only 4 points to 5,221.06 points. French grocery retailer Carrefour Group advanced 2.8% after reporting a net loss in its fiscal 2018, the company has issued upwards revision of several targets of the Carrefour 2022 plan.
Britain’s FTSE 100 fell on Thursday, as the blue-chip index is down by 0.54% to 7,068.91 points at 11:40 GMT. Engine maker Rolls-Royce lost 3.1%, on track for its worst day since early December, after it withdrew from a competition to power Boeing’s planned mid-market aircraft. General insurer RSA fell by 4.3% as high weather-related losses and weakness in commercial underwriting hit its annual operating profit. EasyJet, Barclays and Micro Focus fell as the stocks traded ex-dividend while packaging and paper group Mondi dipped after a cautious 2019 forecast.
Wall Street pre-session recap
The US stock index futures were lower Thursday morning, after the U.S.-North Korean summit in Vietnam ended without an agreement.
At around 07:00 a.m. ET, Dow futures were 47 points lower, indicating a negative open of more than 22 points. Futures on the S&P 500 and Nasdaq Composite were both seen relatively downbeat.
A first reading of fourth-quarter real GDP will be released at around 8:30 a.m. ET. Chicago PMI figures for February and Kansas City Federal Reserve’s latest survey are both set to follow later in the session.