Global shares rise as investors watch US-China trade talks
A currency trader walks by the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room in Seoul, South Korea, Monday, March 18, 2019. Asian shares were mixed Monday as investors continued to watch for signs the U.S. and China could be making progress on critical negotiations aimed at resolving a trade war between the world’s two biggest economies. (AP Photo/Lee Jin-man)
TOKYO — Global shares rose Monday as investors awaited signs the U.S. and China could be making progress in negotiations on resolving the trade war between the two biggest economies.
France’s CAC 40 added 0.2 percent to 5,413.78. Germany’s DAX rose 0.1 percent to 11,697.10, while Britain’s FTSE 100 gained 0.4 percent to 7,255.26.
U.S. shares were set for a mixed start with Dow futures inching down less than 0.1 percent to 25,876.00. S&P 500 futures rose less than 0.1 percent, to 2,831.60.
China’s congress on Friday endorsed an investment law that aims to address complaints, particularly from the U.S., that China’s system is rigged against foreign companies. The U.S. claims China forces companies to share technology in order to do business in the country.
The lack of any major upsets in the talks appears to have calmed frazzled nerves.
The Shanghai Composite index jumped 2.5 percent to 3,096.42 while Hong Kong’s Hang Seng advanced 1.4 percent to 29,409.01.
But that could easily change, given reports that a meeting between President Donald Trump and Chinese leader Xi Jinping to formalize a deal might be pushed back to June.
“U.S.-China trade war concerns were a major factor of a global growth downgrade,” said Alfonso Esparza, an analyst with Oanda. “While comments from both sides have been positive, there have been few details on where negotiations stand. The delay could once again spark anxiety in the market.”
Traders are also confident that the Federal Reserve will hold off on any action that could jeopardize economic growth. The central bank, which signaled in January that it was hitting pause on its rate hikes amid a slowdown in global growth and weak inflation, is holding a meeting of policymakers this week.
Elsewhere in Asia, Japan’s benchmark Nikkei 225 added 0.6 percent to 21,584.50. Australia’s S&P/ASX 200 rose 0.3 percent to 6,190.50. South Korea’s Kospi added 0.2 percent to 2,179.49. India’s Sensex slipped 0.1 percent to 37,994.25, while shares in Southeast Asia were mostly higher.
CURRENCIES: The dollar rose to 111.50 Japanese yen from 111.48 yen on Friday. The euro strengthened to $1.1345 from $1.1326.
ENERGY: The price of U.S. crude oil dropped 33 cents to $58.19 a barrel in electronic trading on the New York Mercantile Exchange. It slipped 0.2 percent to settle last week at $58.52 a barrel. Brent crude gave up 26 cents to $66.90 a barrel. /gsg
