Breaking News
0

Global stocks slip amid lack of detail on trade deal

Stock MarketsOct 14, 2019 04:58AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

By Ritvik Carvalho

LONDON (Reuters) - A global index of stock markets slipped on Monday as signs of progress in the China-U.S. trade dispute drew mixed a reaction from investors, with some cautioning over a lack of detail in the initial stages of the agreement.

Stock markets in Asia cheered U.S. President Donald Trump's outlining the first phase of an agreement to end a trade war with China and suspending a threatened tariff hike, but European shares slipped.

The pan-European STOXX 600 index (STOXX) was down 0.75% in early trade in London.

Germany's DAX (GDAXI), dominated by companies exposed to China, slipped 0.5%. All European country indexes were in the red.

MSCI's All-Country World Index, which tracks shares across 47 countries, was down 0.06% on the day.

The emerging trade deal, covering agriculture, currency and some aspects of intellectual-property protection, would represent the biggest step by the two countries in 15 months. But investors advised caution.

"While a positive development, we are not absolutely certain that this marks the start of a clear de-escalation of the trade dispute," said Mark Haefele, chief investment officer at UBS Global Wealth Management. A number of issues were unresolved or unclear, in his view.

"A delay to the scheduled December tariffs was not announced, although that's likely if a deal is reached, and the state of provisions on intellectual property, forced technology transfer, and Chinese state subsidies, the most difficult aspects of the negotiations, are still unclear."

Contributing to the gingerly reception of phase 1 of the trade agreement were data showing a further contraction of Chinese exports and imports in September. Liquidity was also lacking with Japan off and a partial market holiday in the United States for Columbus Day.

Australia's main index gained 0.54% (AXJO) and South Korea (KS11) rose 1.11%. Shanghai blue chips (CSI300) added 1%.

E-Mini futures for the S&P 500 were down 0.2% after rising on Friday.

The drag from the trade war was a major reason Singapore's central bank eased monetary policy on Monday for the first time in three years. Data showed the city-state's economy had only narrowly dodged recession.

BIG WEEK FOR BREXIT

The progress on trade was still enough to hit safe-haven bonds. Yields on U.S. 10-year Treasury notes rose to 1.7530%.

The yield curve also steepened as short-term rates were held down by news the Federal Reserve would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system.

The fading rally in risk assets as European markets opened saw the Japanese yen regain ground against the dollar. The currency was 0.2% higher to the dollar at 108.22 .

The dollar gained 0.2% against a basket of currencies.

Sterling fell to $1.2556 , retreating from a 15-week high of $1.2708 on Friday on optimism Britain could reach a deal on Brexit with the European Union. However, both British and EU officials said on Sunday more work would be needed to secure an agreement.

More talks will be held on Monday before a summit of EU leaders in Brussels on Thursday and Friday.

Spot gold gained 0.05%, last trading at $1,490.20 per ounce.

Oil prices pared gains made on Friday after reports that an Iranian state-owned oil tanker had been attacked in the Red Sea.

Investors were also watching Turkey's incursion into Syria as the White House threatened to impose sanctions on Ankara.

Brent crude futures eased 1.14% to $59.82 a barrel. U.S. crude lost 1.04% to $54.13 a barrel.

Global stocks slip amid lack of detail on trade deal
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Krl Marx
Krl Marx Oct 14, 2019 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hahaha what a joke. There's no trade war. Just a scheme to manipulate the economy. I'm gonna cash for now and wait a real president.
Jack Drummond
Jack Drummond Oct 14, 2019 7:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bingo. buy physical gold til then
eddie glass
eddie glass Oct 14, 2019 3:26AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
so much market hype friday, anticipating a big dumpola today
brad merck
brad merck Oct 14, 2019 2:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
GOLD UP 1520 coming
Brad Dover
Brad Dover Oct 14, 2019 2:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A recession CANNOT be stopped now even with trade deals..CEOs are not going to invest again until it is over ..The yield curve also steepened as short-term rates were held down by news the Fed would start buying about $60 billion per month in Treasury bills to ensure "ample reserves" in the banking system.
Lara Kiri
Lara Kiri Oct 14, 2019 1:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If there had been a « great deal signed by great people » we would have been invaded all weekend by tweets from the « greatest POTUS of all time. »
Tim Lee
Tim Lee Oct 14, 2019 1:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
USA always had leverage on China. They will be begging again the next few weeks
David Wong
David Wong Oct 14, 2019 1:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China is winning and winning big now. Trump has to cut short and deal with China, or China Roar will collapse the US into a dark recession.
marielisa paris
marielisa paris Oct 14, 2019 1:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
David Wong     Grande China !!!!!  ^_^
David Wong
David Wong Oct 13, 2019 8:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When you see that finger pointing up like that, we will go much higher tomorrow. Lol
Cayo Augusto Estevao
Cayo Augusto Estevao Oct 13, 2019 8:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hahahaha sure will
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email