Global stocks rebound from trade fears, oil recovers some
Joe McDonald, The Associated Press
Published Thursday, July 12, 2018 6:04AM EDT
BEIJING -- Global stock markets rose Thursday following Wall Street's decline amid U.S.-Chinese trade tensions and oil prices recovered some of the previous day's steep losses.
KEEPING SCORE: In early trading, London's FTSE 100 rose 0.4 per cent to 7,625.79 and Germany's DAX added 0.2 per cent to 12,448.09. France's CAC 40 gained 0.2 per cent to 5,366.25. On Wednesday, the CAC 40 and DAX both lost 1.5 per cent while the FTSE 100 was off 1.3 per cent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor's 500 index both were up 0.4 per cent.
ASIA'S DAY: The Shanghai Composite Index rose 2.2 per cent to 2,837.66 and Tokyo's Nikkei 225 gained 1.2 per cent to 22,187.96. India's Sensex climbed 1 per cent to 36,615.08 and Sydney's S&P-ASX 200 advanced 0.9 per cent to 6,268.30. Hong Kong's Hang Seng gained 0.7 per cent to 28,517.61 and Seoul's Kospi added 0.2 per cent to 2,285.06. Benchmarks in Taiwan and Southeast Asia also advanced, while New Zealand declined.
TRADE TENSION: China's government said it will take "firm and forceful measures" if the Trump administration goes ahead with its threat of tariff hikes on an additional $200 billion of Chinese goods. President Donald Trump has threatened to raise duties on almost everything Americans buy from China. Beijing is running out of American goods for retaliatory tariffs due to its lopsided trade balance, which means it might impose other measures.
ANALYST'S TAKE: China's strong language but lack of detail is "leaving the market on edge," said Jingyi Pan of IG in a report. With no sign Washington and Beijing are resuming negotiations, "it is of little surprise to find investors pondering the 'firm and forceful measures' that China has pledged."
WALL STREET: Companies that sell computer chips, oil, basic materials and heavy machinery dropped after the Trump administration's tariff threat. The Standard & Poor's 500 index lost 0.7 per cent to 2,774.02. The Dow Jones Industrial Average dropped 0.9 per cent to 24,700.75. The Nasdaq composite fell 0.5 per cent to 7,716.61.
ENERGY: Benchmark U.S. crude gained 50 cents to $70.88 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $3.27 on Wednesday to close at $70.38. Brent crude, used to price international oils, gained $1.38 to $74.76 per barrel in London. It lost $5.36 the previous session to $73.40.
CURRENCY: The dollar gained to 112.31 yen from Wednesday's 111.99 yen. The euro edged up to $1.1675 from $1.1673.