Global stocks were mixed on Wednesday after Wall Street ended a five-day winning streak amid Trump’s threats to impose new duties on Chinese imports. Asian markets were mostly into the red, while the European equities are flat in mid-session trading. However, Wall Street futures are pointing for a positive start of the session, which will be busy from major corporate reports of Bank of America, IBM, and Netflix.
A rise in expectations of further monetary easing by central banks has helped stocks markets globally recover from a pounding in May due to concerns over global growth and the impact of US President Donald Trump’s trade war with China. In another sign that the conflict could be protracted, Trump said on Tuesday that the United States and China have a long way to go to strike a deal and that he could impose tariffs on an additional 325 billion USD worth of Chinese goods if needed.
Treasure Secretary Steven Mnuchin said earlier that he expects more talks with his Chinese counterparts this week. Prospects for progress are uncertain, however, since the main issues blocking agreement have not been resolved.
Asian markets recap
Most of the Asian stock indexes ended today’s trading session with a decline after the US President Donald Trump once again hinted he could impose duties on Chinese imports with an annual turnover of 325 billion USD.
In China, the mainland index Shanghai Composite fell by 0.20% to 2,931.69 points. The Hong Kong’s benchmark Hang Seng reported a drop of 60.52 points, or 0.21%, to 28,559.10 points. The stocks of Tencent rose by 0.1% after the Chinese technology giant-backed live-streaming firm DouYu prices US IPO at the low end of the range. DouYu International Holdings Ltd, China’s largest live-streaming platform, on Tuesday said it sold 775 million USD in stock at a 3.73 billion USD valuation after pricing its US initial public offering at the bottom of an indicative range.
In Japan, the blue-chip index Nikkei 225 wiped out 66.07 points, or 0.31%, to 21,469.18 points. The shares of the conglomerate SoftBank Group declined by 2.35%. The best performers of the session were Daiichi Sankyo Co (+3.13%), Hitachi Zosen (+3.04%) and Toyobo Co (+2.66%), while on the flipside were Terumo Corp (-2.85%), TDK Corp (-2.60%) and Taiyo Yuden Co (-2.42%).
South Korean index Kospi posted a decrease of 0.91% to 2,072.92 points.
Only the Australian S&P ASX 200 managed to finish the session into the green territory, rising by 0.49% to 6,673.30 points. Earlier today, the head of the Australian Prudential Regulation Authority, Wayne Byres, said he would tighten the measures against companies in the financial sector after an independent report criticized the institution’s sluggish action. The government has already allocated 150 million AUD (106 million USD) to the regulator for the current financial year, which, according to Wayne Byres, is not enough to increase the efficiency of banking supervision.
The focus of investors was also on Singapore, where exports are down more than expected in June. The island city-state recorded a 17.3% drop in exports on an annual basis, which sharply differs from the projected decline of 9.9%. This is the biggest decline in exports since February 2013, when this indicator recorded a decrease of 33.2%.
European markets mid-session recap
European shares are almost flat on Wednesday, as upbeat results from chipmaker ASML and pharma firm Swedish Orphan Biovitrum were offset by a steep fall in oil stocks, with rising Sino-American trade tensions weighing. The pan-European index Stoxx 600 inched higher by 0.16 points, or 0.04%, to 389.26 points. The biggest percentage loser was the oil and gas sector, down by 1.14%. Auto stocks were hit by data that showed European car sales dropped 7.9% in June, led by bigger declines for Nissan, Volvo, and Fiat Chrysler.
German index DAX 30 is down by 4.25 points, or 0.03%, to 12,426.72 points at 09:40 GMT. Banking stocks were slightly into the red with Deutsche Bank and Commerzbank falling by 0.05% and 0.65%, while carmakers Daimler and Volkswagen dropped by 1% and 0.15%. The stocks of Bayer are on the rise, adding 0.8%. Deutsche Lufthansa continues its uptrend, adding another 0.25% today.
French index CAC 40 stalled at 5,614.06 points at mid-session trading. The stocks of energy heavyweight Total gave up more than 1.5% after US crude trailed gains for international benchmark Brent on oversupply worries. The stocks of Airbus are up by 0.75%.
British blue-chip index FTSE 100 loses 0.05% to 7,573.99 points. Inflation remained steady at 2% in June, according to figures from the Officer for National Statistics, the same as in May. Pleasingly for workers, that figure is below average UK wage growth which rose to 3.6% in May, the highest rate since 2008. Net gaming revenue at Ladbrokes and Coral owner GVC Holdings PLC rose by 5% in the first half of the year, despite tough comparatives and changes to the UK betting shop regulations. As has been the case for a few years now, gambling apps and websites were the big drivers, with online net gaming revenue surging 17% during the six months ended 30 June, which analysts at Peel Hunt described as “remarkable”.
Wall Street pre-session recap
Wall Street stock index futures pointed to a higher open again Wednesday morning, after ending a lengthy winning streak following President Donald Trump’s skeptical comments on the ongoing US-China trade war.
Around 5:50 a.m. ET, Dow futures indicated a positive open of more than 40 points. The S&P 500 and Nasdaq were also seen moving higher.
The markets will track the weekly mortgage applications at 7 a.m., housing starts figures for June at 8:30 a.m. ET, while EIA crude oil stocks change data is set for release at 10:30 a.m. ET.