World markets failed to find a single direction on Friday, as Wall Street colored in red, while Asian stocks were traded with mixed trends. The investors are waiting for the G20 summit in Argentina, at which the US President Donald Trump will meet with Chinese leader Xi Jinping.
According to an unofficial information, in an effort to curb trade tensions and stimulate markets, the US and China are negotiating an agreement that Washington will freeze at least until the spring of introducing new tariffs. In return, Beijing will engage in a negotiation which aims to achieve a more significant change in the country’s economic policy.
The talks have already been held for several weeks on the phone, and the crucial stage is expected to be reached at the G20 forum in Buenos Aires.
Asian markets recap
Asian markets failed to find a single direction on Friday as investors look forward to meeting between the US President Donald Trump and Chinese leader Xi Jinping at the G20 summit in Argentina, which many hope will lead to a de-escalate trade pressure between the two countries.
Japan’s blue-chip index Nikkei 225 rose by 88.46 points, or 0.4%, to 22,351.06 points, and the smaller index Topix added 0.48% to 1,667.45 points.
South Korean index Kospi, however, wiped out 17.24 points, or 0.82%, to 2,096.86 points. The South Korean central bank raised its benchmark interest rate for the first time in a year, but the move was largely expected. Analysts say, despite the slowdown in economic indicators, as a whole, the central bank raised interest rates due to the “risk of financial imbalances”.
However, there was a ray of light on the Chinese continental markets. The continental index Shanghai Composite rose by 20.74 points, or 0.81%, to 2,588.18 points. The smaller index Shenzhen Composite added 12.31 points, or 0.92%, to 1,337.74 points. Hong Kong’s benchmark Hang Seng increased by 0.21% in afternoon trading. The Chinese manufacturing sector has stagnated in November for the first time in more than two years, while new orders shrink. The official PMI index reached 50 points in November, remaining below market expectations and a level of 50.2 points.
In Australia, the index S&P ASX 200 fell by 91.20 points, or 1.58%, to 5,667.20 points, and most sectors ended with decreases. The financial sub-index wiped out 1.58% of its value, and the raw material sector ended down by 0.69%.
European stock mid-session recap
The German stocks have been under pressure throughout the week, and this is the story again in the Friday session. Currently, the index DAX 30 is trading at 11,232.68 points at 11:45 GMT, down by 0.58% for the day. Earlier on Friday, the index dipped to 11,224 points, which was its lowest level since November 21. On the release front, German retail sales fell to a 3-month low, with a reading of -0.3%. In the Eurozone, inflation levels dipped in November. The CPI Flash Estimate dipped to 2.0%, while the core CPI Flash Estimate followed the same trend, edging lower to 1.0%.
French stocks fell modestly on Friday, with weak Chinese data and caution ahead of a crucial G20 summit keeping investors nervous. The benchmark CAC 40 is down by 22 points, or 0.44%, to 4,984.07 points. Automaker Renault eased 0.3% and Peugeot fell 1.2% on fears of possible new tariffs. Luxury group Kering dropped by 1.4% and LVMH lost 1% after a gauge of Chinese manufacturing activity fell for the fourth straight month in November, adding to signs of slowing growth in the world’s second-largest economy.
The British FTSE 100 fell further Friday morning, with losses for homebuilders contributing toward deepening the benchmark’s loss for the month of November. The index slumped by 57.60 points, or 0.82%, to 6,981.26 points. The country’s house price index inched up by 0.3% in November on a month-over-month basis. It also said price growth expanded by 1.9% on an annual basis, from 1.6% in October when that was the lowest rate since May 2013.
Wall Street pre-session recap
Wall Street indexes futures dropped on Friday, on the final trading day of November, as investors turned their focus to an upcoming gathering of world leaders in Argentina.
Dow Jones Industrial Average futures traded 142 points lower at about 7 a.m. ET, indicating a decline of 92 points. S&P 500 and Nasdaq 100 futures also pointed to losses at the open. The index S&P 500 is expected to decrease by 7.61 points, while Nasdaq points to open with a drop of 20.40 points.
Chicago PMI and US PMI manufacturing index figures are due to be released at 9:45 a.m. ET. Meanwhile, New York Fed President John Williams is set to speak at a panel on the future of the global economy at around 9 a.m. ET.