Global stocks mostly rise as investors watch central banks

11-Sep-2019 Intellasia | AP | 6:02 AM Print This Post

Global stocks mostly rose Monday as investors digested economic data and hoped for central banks to step in to nudge up growth.

Germany’s DAX was up 0.3 percent to 12,224, while France’s CAC 40 fell 0.2 percent to 5,595 and Britain’s FTSE 100 shed 0.6 percent to 7,238. US shares were set to drift higher, with Dow futures up 0.2 percent and S&P 500 futures up 0.2 percent.

Japan’s benchmark Nikkei 225 rose nearly 0.6 percent to finish at 21,318.42. Australia’s S&P/ASX 200 was little changed, inching up less than 0.1 percent at 6,648.00. South Korea’s Kospi gained 0.5 percent to 2,019.55. Hong Kong’s Hang Seng inched down less than 0.1 percent to 26,673.46, while the Shanghai Composite rose 0.8 percent to 3,024.74.

New data on Sunday showed that China’s trade with the United States was falling as the two sides prepare for negotiations with no signs of progress toward ending a tariff war that threatens global economic growth.

Imports of American goods tumbled 22 percent in August from a year earlier to $10.3 billion, while exports to the United States, China’s biggest market, sank 16 percent to $44.4 billion, according to the data.

Both sides have raised tariffs on billions of dollars of each other’s imports in the fight over complaints about Beijing’s trade surplus and technology development plans. The United States, Europe, Japan and other trading partners say those violate Chinese market-opening commitments.

Investors have been encouraged in recent days by news that envoys from Washington and Beijing plan to begin another round of trade talks next month, though their outcome remains highly uncertain.

In the US, traders had a muted reaction to data released Friday showing that US employers added fewer jobs than expected in August.

The jobs report was the latest in a mixed batch of economic data that investors scrutinised this week in search of clues about how the economy is weathering the costly trade war. Tariffs that the US and China have imposed on hundreds of billions of dollars-worth of goods may be dampening global economic growth and threatening to nudge the United States into a recession.

Investors are watching central banks for hints on what they will do to help the economy. The European Central Bank is expected to unveil new monetary stimulus measures on Thursday, though doubts remain about how much it can help the economy when many key sources of uncertaintyfrom the trade wars to Brexitcan only be solved by political agreements.

The Federal Reserve is also expected to cut interest rates again in two weeks, though how aggressively it might continue doing so at later meetings remains open to speculation.

ENERGY: Benchmark crude oil added 34 cents to $56.86 a barrel. It rose 22 cents to settle at $56.52 a barrel on Friday. Brent crude oil, the international standard, added 33 cents to $61.87 a barrel.

CURRENCIES: The dollar was roughly stable at 106.96 Japanese yen. The euro was up slightly at $1.1037, from $1.1023 on Friday.


Category: Japan

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