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Global stocks mixed amid disappointing economic data in Europe

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Global stocks are trading mixed on Tuesday amid continuing Sino-American trade tensions and disappointing economic data from Germany. The positive mood of investors in Asia did not spread to Europe and the US, keeping the main indexes without a single direction.

Concerns about the Sino-American trade tensions continue to partially diminish the mood of investors. On Monday, US President Donald Trump said that Washington is not ready to make a deal with Beijing for the time being.

Earlier, Trump commented on the Huawei case, saying that the Chinese technology company could be included in the trade agreement while defining Huawei as “very dangerous”.

The market sentiment remains unclear before the upcoming meeting between Chinese President Xi Jinping and the US head of state Donald Trump in June.

Meanwhile, China’s iron ore prices have hit record highs this week amid rising concerns about shrinking stocks and worries about the risk of another Brazil mine dam collapse.

Asian markets recap

The main stock indexes of the Asia-Pacific region ended the trading session into the green amid the appreciation of the shares of a number of automotive companies. However, worries about trade and the growth of the economy continue to keep the investors under pressure.

In Japan, the blue-chip index Nikkei 225 advanced by 77.56 points, or 0.37%, to 21,260.14 points. The shares of the local automobile companies Toyota, Honda, and Nissan grew by 0.76%, 0.40% and 2.31%, respectively.

On the Shanghai Stock Exchange, the mainland benchmark Shanghai Composite reported a minimum growth of 0.06% to 2,894.09 points. Hong Kong’s index Hang Seng rose by 81.84 points, or 0.30%, to 27,369.93 points.

One of the main topics in the focus of the investors is the possible merger between Fiat Chrysler and Renault, which would create a company with a market value of about 32.6 billion EUR. On Monday, the Italian-American producer made a formal offer to the French concern, predicting that the merger would be structured on equal ownership. In a separate statement, Renault said leaders will meet today to discuss the proposal.

Following this news, the shares of the Japanese carmaker Mitsubishi Motors Corp rose by 5.95%, while the stocks of Geely Automobile Holdings Ltd added 5.47% to its value.

The South Korean index Kospi added 0.23% to its value, ending the day at 2,048.83 points.

korea index

In Australia, the local benchmark S&P ASX 200 rose by 32.90 points, or 0.51%, to 6,484.80 points.

European stocks mid-session recap

European stocks were lower on Tuesday morning, as broad uncertainties over trade and economic growth soured investor sentiment. The pan-European Stoxx 600 index was down around 0.3% during mid-morning deals, with most sectors and major bourses in negative territory.

Europe’s banking index led the losses during morning deals, down over 0.9% amid reports the European Commission could hit Italy with a hefty fine for failing to rein in its budget.

German index DAX 30 edged lower by 52 points, or 0.43%, to 12,019.18 points at 10:15 GMT. Consumer confidence in the country has cooled in June, reaching its lowest level for more than two years, as buyers are less likely to buy, and their growth expectations in the largest economy in Europe are declining. Germany’s consumer confidence index of GfK dropped to 10.1 points down from 10.2 in the previous month. The value was the lowest since May 2017. The financial stocks were performing particularly bad with Deutsche Bank declining by 2.2% and Commerzbank down by 2.0%. The shares of automakers are on the rise with Volkswagen and Daimler appreciated by 1.05% and 0.55%, respectively.

DAX 30

French index CAC 40 is trading with a decline of 0.55% to 5,306.90 points at mid-session. The stocks of Renault continue its uptrend after the news for possible merged with Fiat Crysler, adding another 1.2% to its market value. The shares of Peugeot are also up by 2.8%, recovering almost all losses from yesterday. However, the financial stocks are deep into the red with Societe Generale falling by 2.2% and BNP Paribas declining by 1.3%.

British blue-chip index FTSE 100 is down by 0.13% to 7,268.55 points despite the gains from mining company shares due to a rise in China’s iron ore prices. Brexit-sensitive stocks such as retailers and housebuilders, which took a hit last week ahead of Prime Minister Theresa May’s announcement that she would resign, also recouped some losses on Tuesday.

Wall Street pre-session recap

Wall Street stock index futures were slightly lower on Tuesday morning, with financial markets on edge as trade worries remain high on investors’ list of concerns.

At around 06:25 a.m. ET, Dow futures are down by 44 points, indicating a negative open of more than 8 points. Futures on the S&P and Nasdaq were both slightly lower, indicating a negative open by 3.66 points and 12.5 points, respectively.

Market focus is largely attuned to global trade developments, with the world’s two largest economies locked in a protracted dispute.

On the data front, the S&P/Case-Shiller home prices index (HPI) and the Federal Housing Finance Agency HPI for March are both expected at around 9:00 a.m. ET.

Consumer confidence, Richmond Fed surveys, and Dallas Fed manufacturing data for May will all follow slightly later in the session.