Optimism returned on the global stock markets after a mixed session in Asia on Thursday.
Initially, the European stocks edged down, but in mid-session recovered and returned into the green. Meanwhile, the government bond yields dipped, as fears of a protracted trade dispute between the US and China led investors to fear a hit to the global economy.
The improved sentiment in Europe spread offshore and Wall Street futures pointed to a positive start to the trading.
Trade tensions continue to weigh on investor sentiment. On Wednesday, the US Department of Commerce announced the addition of Huawei Technologies and its affiliates to the Bureau of Industry and Security (BIS) Entity List, making it more difficult for the Chinese telecom giant to conduct business with US companies.
Meanwhile, multiple sources told CNBC Wednesday that Trump plans to postpone auto tariffs by up to six months. The White House faces a Saturday deadline to decide whether to slap duties on car and auto part imports over national security concerns.
Asian markets recap
Most of the indexes in the Asia-Pacific region ended today’s trading session into the green with investors looking again at the trade relations between Washington and Beijing after it became clear that the US president’s banned the participation of the technology giant Huawei in the US telecommunication networks.
In China, the mainland index Shanghai Composite advanced by 17.03 points, or 0.58%, to 2,955.71 points. Hong Kong’s benchmark Hang Seng rose by 86.82 points, or 0.31%, to 28,355.53 points.
In Japan, the blue-chip index Nikkei 225 declined by 125.58 points, or 0.59%, to 21,062.98 points. The stocks of Nissan rose by 0.17%, while those of Toyota declined by 1.04%.
In South Korea, the local index Kospi declined by 1.20% to 2,067.69 points. Hyundai Motor’s stock fell by 0.39%, while Kia Motors added 0.95%.
Australian benchmark S&P ASX 200 rose by 43.60 points, or 0.69% to 6,327.80 points.
European markets mid-session recap
German index DAX 30 is trading higher by 20.72 points, or 0.17%, to 12,120.29 points at 10:00 GMT. Core German government bond yields were flirting with their lowest level in nearly three years while Dutch bond yields were about to dip into negative territory, a phenomenon not seen since October 2016. BMW shares traded 0.14% higher, while Daimler fell by 0.6% and Volkswagen dropped by 0.32%. Thyssenkrupp was among the strongest performers, its stock rising 5% on reports that Finland’s Kone is assessing the viability of a bid for the German industrial company’s elevators division.
French index CAC 40 is down by 0.09% to 5,369.57 points. French President Emmanuel Macron spoke on Thursday and poured cold water on the idea of implementing protectionist measures on tech companies like Huawei. The stocks of Renault were down by 0.9%.
British FTSE 100 returned to growth, adding 0.15% to 7,308.12 points. Luxury brand Burberry, whose shares have suffered from the Sino-US trade conflict, gave up 4.7% and was on track for its worst day since January after reporting a drop in adjusted operating profit. Brexit uncertainty also persisted. Members of Prime Minister Theresa May’sConservative Party said they would vote against her proposed Brexit agreement, which has already been rejected three times. Thomas Cook slumped more than 17%, to levels not seen since November 2012, after the travel group said economic and political uncertainty would affect profits this summer. Its larger rival TUI fell 2.1%. Airlines easyJet and IAG gave up more than 1%.
Wall Street pre-session recap
Wall Street stock index futures pointed to a positive start to the trading day after President Donald Trump declared a national emergency over threats against American technology on Wednesday.
At 6:20 a.m., Dow futures pointed to a gain of more than 100 points at the open. Futures on the S&P 500 and Nasdaq indexes were also higher.
On the data front, investors will be watching housing starts, weekly jobless figures, and a Philadelphia Fed Business Outlook at 8:30 a.m. ET.