Markets rise despite US-China war of words

An investor looks at a computer screen showing stock information at a brokerage house in Shanghai March 17, 2015. — Reuters pic
An investor looks at a computer screen showing stock information at a brokerage house in Shanghai March 17, 2015. — Reuters pic

LONDON, Nov 19 — Global stocks rose today, despite a war of words between Donald Trump’s vice president Mike Pence and leader Xi Jinping, dealers said.

Europe’s major markets climbed as traders shrugged off Brexit and Italy jitters, while Paris also gained despite a massive slump in Renault amid reports its chief Carlos Ghosn had been arrested in Japan over alleged irregularities at Nissan, its long-term partner.

“European stocks are higher… despite the continued political uncertainty,” said CMC Markets analyst David Madden.

“The political landscapes in the UK and Italy are still unsettled, and the US- trade tensions rumble on.”

Sentiment was relatively calm and cautious at the start of the week after the volatility of the last seven days, with oil stabilising and the US Federal Reserve tempering fears about its plans for interest .

‘Frosty’ relations

Asia- leaders failed yesterday to bridge gaping divisions over trade at a summit dominated by a war of words between the US and China as they vie for regional influence.

For the first time, Apec leaders were unable to agree on a formal written declaration amid sharp differences between the world’s top two over the rules of global trade.

Hopes of agreement were jolted by a spat between Pence and Xi over China’s economic and regional ambitions, with the US vice president mocking Beijing’s “constricting belt” and “one-way road” initiative.

Xi however defended his scheme and hit out at Trump’s “ First” protectionist agenda, saying it was a “short-sighted approach” that was “doomed to failure”.

“US-China relations remain frosty, with the Apec meeting proving once again that the two sides remain far from any agreement on trade,” said IG analyst Joshua Mahony.

“The FTSE 100 is moving cautiously higher… as further signs of a breakdown in relations between the US and China failed to fully dampen early trade in Europe.”

Before the weekend, had provided a positive lead after Trump said Beijing had made overtures toward resolving their trade war, meaning he might hold off imposing another round of tariffs.

The president’s comments followed an indication from one of his top economics advisers that talks were under way ahead of a planned meeting at the G20 in Argentina at the end of this month.

Renault hits skids

Paris stocks meanwhile advanced despite tumbling Renault shares.

Nissan said it will ask its board to remove Ghosn as chairman after an inquiry uncovered “significant acts of misconduct,” including reporting less than he was earning in Japan and using company assets for personal purposes.

Japan’s public broadcaster NHK and other media outlets said Ghosn had been arrested after being questioned by Japanese prosecutors for various improprieties including underreporting his income.

“The story has rocked investor confidence in the Paris-listed stock,” said Madden.

Renault’s plunged 10.65 per cent to €57.63 (RM275) in Paris, having earlier hit a low at €54.80.

Key figures around 1150 GMT

London — FTSE 100: UP 0.5 per cent at 7,047.01 points

Frankfurt — DAX 30: UP 0.1 per cent at 11,353.52

Paris — CAC 40: UP 0.2 per cent at 5,035.21

EURO STOXX 50: UP 0.3 per cent at 3,189.87

Tokyo — Nikkei 225: UP 0.7 per cent at 21,821.16 (close)

Hong Kong — Hang Seng: UP 0.7 per cent at 26,372.00 (close)

Shanghai — Composite: UP 0.9 per cent at 2,703.51 (close)

New York — Dow: UP 0.8 per cent at 25,290.39 (close Friday)

Euro/dollar: UP at US$1.1425 from US$1.1415 at 2200 GMT

Pound/dollar: UP at US$1.2868 from US$1.2834

Dollar/yen: DOWN at 112.66 yen from 112.83 yen

Oil — Crude: UP 28 cents at US$67.04 per barrel

Oil — West Texas Intermediate: UP 19 cents at US$56.65 — AFP

Source: The Malay Mail Online

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