TOKYO (AP) — Global shares were mixed yesterday, after Wall Street indexes posted modest gains, cheered by solid profits and forecasts from United States (US) technology companies.
But uncertainties such as US-China trade tensions and Britain’s unruly process toward leaving the European Union (EU) weighed on investor sentiment.
France’s CAC 40 edged up 0.2 per cent to 5,692.86. Germany’s DAX slipped 0.2 per cent to 12,845.85. Britain’s FTSE 100 added nearly 0.2 per cent to 7,316.62.
US shares were set to drift higher with Dow futures inching up slightly to 26,782. S&P 500 futures were up 0.1 per cent at 3,006.80.
Faltering progress toward the United Kingdom’s departure from the EU took another setback when British Prime Minister Boris Johnson said on Thursday he plans to ask Parliament to vote on Monday on a motion calling a national election for December 12.
That came two days after lawmakers stymied Johnson’s latest attempt to get approval for his proposal for leaving the 28-nation bloc.
In Asian trading, Japan’s benchmark Nikkei 225 added 0.2 per cent to finish at 22,799.81. Australia’s S&P/ASX 200 gained 0.7 per cent to 6,739.20. South Korea’s Kospi edged 0.1 per cent higher to 2,087.89. Hong Kong’s Hang Seng dipped 0.4 per cent to 26,683.95, while the Shanghai Composite advanced 0.5 per cent to 2,954.93.
Traders have been bracing for weaker results this earnings season amid concerns about the costly trade war between the US and China, and increased signs of slowing economic growth worldwide.
The Federal Reserve and Japan’s central bank are due to hold policy meetings next week that hold the potential to please or disappoint markets.
However, earnings reports so far have mostly exceeded Wall Street analysts’ modest expectations.
“The past week saw most major share markets push higher helped by generally good US earnings reports, benign geopolitical news and optimism that global recession will be avoided,” said Chief Economist at AMP Capital Shane Oliver. Meanwhile, US and Chinese officials have been working on the details of an agreement aimed at resolving some of the disputes that have embroiled the world’s two largest economies in a tariff war that is squeezing manufacturers and farmers on both sides.
US Vice President Mike Pence adopted a hard line in a speech on Thursday laying out US President Donald Trump’s China policies.
He accused companies, including Nike and the NBA, of being too willing to ignore Chinese pressure and censorship and repression in pursuit of profits. He also said the FBI has 1,000 active investigations into intellectual property theft, most of them involving China.
Pressure on US companies to share advanced technology is one of the key sticking points in the dispute with Beijing over its own industrial and trade policies. Pence also reiterated US support for protesters in Hong Kong who have been holding increasingly violent demonstrations for more than four months to voice their fears Beijing is infringing on liberties promised to the semi-autonomous region when China took control of the former British colony in 1997.
So far, American backing for the protesters has drawn sharp rebukes from China but hasn’t appeared to affect the trade talks.
But the expected approval of a resolution expressing support for the protesters by the US Senate, following a similar one in the House of Representatives, is likely to anger Beijing further.
ENERGY: Benchmark crude oil dipped 17 cents to USD56.06 a barrel in electronic trading on the New York Mercantile Exchange.
It rose 26 cents to USD56.23 a barrel on Thursday. Brent crude oil, the international standard, lost 13 cents to USD61.54 a barrel.
CURRENCIES: The dollar was little changed, rising to 108.64 Japanese yen from 108.60 yen on Thursday. The euro rose to USD1.1112 from USD1.1105.