The uncertainty about the US-China trade talks continue to keep the investors under pressure and negatively affect the markets.
The mood is quite cautious with investors looking ahead to the reports on consumer sentiment, activities in the manufacturing and service sectors in Germany and the European Central Bank’s monetary policy, all due on Thursday.
Asian markets recap
The main stock indices of the Asia-Pacific region ended without a single direction amid continued concerns about US-China trade talks.
The blue-chip index on the Tokyo Stock Exchange, Nikkei 225, ended with a decline of 0.14% to 20,593.72 points. The shares of Apple’s supplier Japan Display jumped by 18.75% after the company announced it was looking for a “rescue belt” due to disappointing sales of the iPhone XR. At the same time, the car maker Subaru reported a drop in its stock price of 3.44%, as the management announced it was temporarily stopping production at its plant in Japan due to defective parts found.
Meanwhile, the Japanese central bank lowered its inflation forecasts on Wednesday and warned for rising economic dangers due to slowing global demand, which further hinders central bankers’ long-standing efforts to support sustainable growth.
In South Korea, the index Kospi rose by 0.47% to 2,127.78 points.
The Australian benchmark S&P ASX 200 dropped by 0.26% to 5,843.70 points due to the negative performance of the energy sector companies. The shares of Santos and Oil Search fell by 1.49% and 1.06%, respectively. The value of Woodside Petroleum’s stocks fell by 1.34%.
In China, the continental index Shanghai Composite rose by 0.05% to 2,581 points, while Hong Kong’s index Hang Seng rose by a minimum of 0.01% to 27,008.20 points.
The main focus of investors remains the trade talks between China and the US. The planned meeting this week between Trade Representative Robert Lighthizer and Chinese vice ministers of trade has been called off due to ongoing differences.
European markets mid-session recap
German stock market is notably lower Wednesday morning, extending losses from the previous session, amid rising concerns about global growth and the likely impact of Sino-US trade dispute. The index DAX 30 is down by 0.16% to 11,072.79 points at 10:45 GMT. Deutsche Bank shares are weak on a report the U.S.Federal Reserve is probing the bank’s role in a Danske Bank money laundering scheme. Infineon is declining by 1.7%, Continental, Daimler, BASF, and BMW are lower by 1.0-1.4%. Meanwhile, RWE is gaining nearly 3%, Deutsche Post is adding 1.4% and Wirecard is up 1%.
British stocks are also slightly down amid uncertainty about Brexit and general negative mood of the investors. The index FTSE 100 is down by 0.19% to 6,888.15 points at mid-session.
The French index CAC 40 is slightly up by 0.2% to 4,857.15 points after the initial collapse caused by the rising concerns about global growth. Valeo, Peugeot, Bouygues, and Renault are down 1 to 1.7%. Societe Generale is losing about 1% and Credit Agricole is declining by 0.8%. Shares of Carrefour are gaining more than 6%. Pernod Ricard is gaining 1.4% and Atos is moving up 1.1%. Veolia Environment and ArcelorMittal are modestly higher.
Wall Street pre-session recap
Wall Street stock index futures fluctuated ahead of Wednesday’s open, trying to shake off the negative trading seen in the previous session and in some international markets.
Around 5:55 a.m. ET, Dow futures are up by 82 points, indicating an open of 93.52 points up. Futures on the S&P 500 were pointing to a positive open of 6.85 points, while Nasdaq futures signaled an open of 18.69 points up.
During the day, the investors will expect the mortgage applications, which are due out at 7 a.m. ET, followed by the Richmond Fed’s survey of manufacturing activity at 10 a.m. ET.