Global stocks mostly fall as Wall Street ends winning streak

TOKYO (AP) — Global stocks were mostly lower yesterday after Wall Street ended a five-day winning streak following disappointing corporate earnings reports. France’s CAC 40 fell nearly 0.1 per cent in early trading to 21,469.18, while Germany’s DAX was little changed but slightly lower at 12,427.90. Britain’s FTSE 100 slipped 0.3 per cent to 7,558.30.

United States (US) shares were set to drift higher with Dow futures up 0.1 per cent at 27,366. S&P 500 futures rose 0.2 per cent to 3,012.40.

Japan’s benchmark Nikkei 225 dipped 0.3 per cent to finish at 21,469.18. Australia’s S&P/ASX 200 added 0.5 per cent to 6,673.30. South Korea’s Kospi dipped 0.9 per cent to 2,072.92. Hong Kong’s Hang Seng slipped nearly 0.1 per cent to 28,593.17, while the Shanghai Composite edged down 0.2 per cent to 2,931.69.

US President Donald Trump told a Cabinet meeting on Tuesday that he was still waiting to see if China would buy more farm products as he expects.

“We have a long way to go on tariffs with China,” Trump said. “We have another USD325 billion that we can put a tariff on if we want,” he said.

Trump and Chinese President Xi Jinping recently agreed to hold off on further tariffs to allow negotiators to resume talks on the dispute over China’s massive trade surplus and its policies aimed at developing advanced technologies in an array of industries.

Trump began ramping up tariffs on Chinese products a year ago and Beijing responded with punitive tariffs of its own.

A woman walks by an electronic stock board of a securities firm in Tokyo yesterday. Asian stocks were mixed yesterday as Wall Street ended a five-day winning streak after the first big round of corporate earnings reports. – AP

US Treasure Secretary Steven Mnuchin said earlier that he expects more talks with his Chinese counterparts this week.

Prospects for progress are uncertain, however, since the main issues blocking agreement have not been resolved.

“President Trump’s renewed threat of more tariffs on Chinese goods has investors bracing for weak trading in the Asian session today, tracking the negative sentiment in the US overnight,” ING economists Nicholas Mapa and Prakash Sakpal said in their report.

The latest round of US corporate financial reports ramps up this week and investors have low expectations.

Wall Street is forecasting a 2.6 per cent drop in profit for S&P 500 companies.

It is set to be the first back-to-back quarterly decline in three years.

Also highly anticipated is the Federal Reserve meeting at the end of the month. Wall Street expects the central bank to raise interest rates to help secure US economic growth threatened by a trade war with China.

ENERGY: Benchmark US crude added 23 cents to USD57.85 a barrel in electronic trading on the New York Mercantile Exchange. It fell USD1.96 to USD57.62 per barrel on Tuesday. Brent crude, the international standard, rose 41 cents to USD64.76 a barrel.

CURRENCIES: The dollar inched up to 108.26 Japanese yen from 108.24 late Tuesday. The euro was also little changed but rose to USD1.1213 from USD1.1211.