Global Stocks Mixed Amid Trade Uncertainty
October 14 2019 - 7:54AM
Dow Jones News
By Caitlin Ostroff and Joanne Chiu
-- U.S. stock futures, European shares decline
-- British pound weakens
-- Asian equities rally
U.S. stock futures and European equities dropped amid renewed
uncertainty about Washington and Beijing resolving disagreements
that have weighed on global growth prospects.
Futures tied to the Dow Jones Industrial Average fell 0.4%, as
fresh questions emerged over the weekend about unresolved issues
between the world's two largest economies, dampening the optimism
that followed their steps toward a truce. The pan-continental Stoxx
Europe 600 index fell 1.1%.
The U.S. and China said last week they were moving toward an
initial trade agreement, with Washington forgoing an increase in
tariffs on imports from China that was scheduled for the coming
days. While Beijing agreed to boost purchases of U.S. agricultural
products, details remained elusive, and disagreements on other
issues remained unresolved.
"At the end of the day, all that happened on Friday was the
tariffs were postponed," said Michael Hewson, chief market analyst
at CMC Markets.
State-run China Daily published an opinion piece Sunday
suggesting that "the champagne should probably be kept on ice,"
until a deal is signed, as Washington may yet reverse its
decision.
"While the U.S. side has played up the agreement, in China, the
reports have been much more measured," Jack Allen-Reynolds, senior
Europe economist at Capital Economics, said.
Brent crude, the global benchmark for oil, fell 2.3% to $59.12 a
barrel as trade concerns dampened the economic growth outlook.
Investors sent gold, considered a haven, up 0.7%.
Adding to the global growth concerns, Chinese trade data
released Monday showed further declines in the country's exports in
September, largely as a result of the trade dispute.
Still, stocks in Asia, which ended trade Friday before President
Trump said the U.S. and China had completed the early stages of a
deal, rallied Monday. The Shanghai Composite gauge advanced 1.2%
while the benchmark Hang Seng Index in Hong Kong rose 0.8%. The
Chinese yuan strengthened 0.2% to 7.0661 a dollar in offshore
trading.
In Europe, the pound fell about 0.7% against the dollar and the
euro. The weekend of talks between European Union and British
negotiators, who face a deadline this week to reach a deal on
Brexit, failed to yield a breakthrough. Diplomats said even the
outline of a deal looked difficult to clinch, given the gap between
the sides and the complexity of the issues. The U.K.'s FTSE 100
index dropped 0.6%.
While U.S. bond markets will be closed Monday for Columbus Day,
stock trading will resume, though likely with lower volumes than
normal.
Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Joanne
Chiu at joanne.chiu@wsj.com
(END) Dow Jones Newswires
October 14, 2019 07:39 ET (11:39 GMT)
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