Global markets higher ahead of Trump-Kim meeting
A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, June 11, 2018. Asian markets were mixed Monday before President Donald Trump planned to meet North Korean leader Kim Jong Un and after his outburst at Canada’s prime minister over trade. (Photo by AHN YOUNG-JOON / AP)
BEIJING — Global markets were mostly higher Monday as Donald Trump prepared to meet North Korean leader Kim Jong Un following the American president’s outburst at Canada’s prime minister over trade.
Keeping score
In early trading, Frankfurt’s DAX rose 0.6 percent to 12,845.25 and London’s FTSE 100 gained 0.5 percent to 7,722.01. Paris’s CAC 40 added 0.3 percent to 5,465.37. On Friday, the CAC 40 rose less than 1 percent while the DAX and the FTSE 100 both lost 0.3 percent. On Wall Street, the future for the Dow Jones industrial average was up 0.3 percent and that for the Standard & Poor’s 500 index rose 0.1 percent.
Asia’s day
Tokyo’s Nikkei 225 rose 0.5 percent to 22,804.04 while the Shanghai Composite Index lost 0.5 percent to 3,052.78. Hong Kong’s Hang Seng added 0.3 percent to 31,063.70 and Seoul’s Kospi advanced 0.8 percent to 2,470.15. India’s Sensex added 0.7 percent to 35,689.79 while benchmarks in New Zealand and Southeast Asia also gained. Australian markets were closed for a holiday.
North Korea talks
US and North Korean officials were preparing for a meeting Tuesday between Trump and Kim aimed at settling the standoff over the North’s nuclear arsenal.
North Korea has reportedly said it is willing to deal away its entire nuclear arsenal if the United States provides it with reliable security assurances and other benefits.
But many say Kim’s government is unlikely to give up weapons that help guarantee its survival.
Trade tensions
Trump took more swipes at Canadian Prime Minister Justin Trudeau, contending that “Fair Trade is now to be called Fool Trade if it is not Reciprocal.” Trump roiled the meeting of leaders of the Group of Seven major industrial economies by first agreeing to a group statement only to withdraw from it while complaining about Trudeau’s criticism of his tariff threats.
After leaving Canada, Trump called Trudeau “dishonest” and “weak” on Twitter. German Chancellor Angela Merkel said she found Trump’s tweet disavowing the G-7 statement “a little depressing.”
Analyst’s take
“The far from harmonious Quebec summit confirmed deep-seated G-6+1’s expanding policy fissures on a plethora of significant concerns including climate change, the Iran nuclear deal and of course trade,” Stephen Innes of currency trader Oanda said in a report. “The Trump-Kim summit is the massive event that has a far-reaching regional implication. While the markets had low expectations going into G-7, assumptions are running high, so if the talks somehow go sideways, there could be a reasonably aggressive regional risk-off move.”
Central bank watch
The US Federal Reserve is expected to announce an interest rate hike on Thursday. Also Thursday, the European Central Bank is expected to give more indications about whether it might bring forward a rate hike now expected in mid-2019. On Friday, the Bank of Japan is due to give its latest policy update.
Wall Street
US stocks ended higher Friday, led by consumer products and health care companies. The S&P 500 and Dow both rose 0.3 percent while the Nasdaq composite advanced 0.1 percent.
Energy
Benchmark US crude shed 17 cents to $65.56 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 21 cents the previous session to close at $65.74. Brent crude, used to price international oils, lost 19 cents to $76.25 per barrel in London. It lost 86 cents the previous session to $76.46.
Currency
The dollar rose to 109.96 yen from Friday’s 109.54 yen. The euro gained to $1.1812 from $1.1770.
