Shares fall in Europe and Asia on Brexit, growth worries

23-Nov-2018 Intellasia | AP | 6:00 AM Print This Post

Global shares were mostly lower Thursday ahead of a Thanksgiving break, as investors focused on slow Brexit negotiations and discouraging data from the United States.

KEEPING SCORE: In Europe, Germany’s DAX index was 0.5 percent lower at 11,191.08 and the CAC 40 in France dipped 0.6 percent to 4,947.05. Britain’s FTSE 100 index lost 0.8 percent to 6,997.36. US markets are closed for Thanksgiving on Thursday and will be open for a half-day on Friday.

ASIA’S DAY: Japan’s benchmark Nikkei 225 surged 0.7 percent to 21,646.55 and the Hang Seng in Hong Kong added 0.2 percent to 26,019.41. South Korea’s Kospi dropped 0.3 percent to 2,069.95. The Shanghai Composite shed 0.2 percent to 2,645.43. Australia’s S&P/ASX 200 gained 0.9 percent to 5,691.30. Shares fell in Taiwan and Thailand but rose in Singapore.

BREXIT TALKS: British prime minister Theresa May said she made “further progress” on Brexit negotiations but “there are some further issues that need resolution,” after a meeting with European Commission President Jean-Claude Juncker on Wednesday. The meeting lasted just over 90 minutes. The European Union and UK have agreed on the terms for the latter’s exit on March 29. Negotiators are still putting together a declaration on their future relations.

US DATA: Sales of existing homes in the US rose in October, breaking a six-month losing streak, the National Association of Realtors announced Wednesday. Sales jumped 1.4 percent to a seasonally adjusted annual rate of 5.22 million in October from 5.15 million a month earlier. Still, the new numbers were still down 5.1 percent from a year ago. Durable goods orders also fell 4.4 percent last month from September, the largest amount in 15 months, with commercial and military aircraft leading the decline. This could point at adverse effects of a trade dispute between the US and China, who have imposed additional tariffs on billions of dollars of each other’s goods.

ANALYST’S TAKE: “Basically the same issues higher US rates, trade, tech correction and fears of its morphing into weaker global growth are continuing to keep investors on edge,” Shane Oliver, head of investment strategy and chief economist at AMP Capital, said in an interview.

ENERGY: Benchmark US crude lost 84 cents to $53.79 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.20 to close at $54.63 in New York. Brent crude, the international standard, gave up 82 cents to $62.66. It finished 95 cents higher at $63.48 in London.

CURRENCIES: The dollar weakened to 112.91 yen from 113.07 yen late Wednesday. The euro rose to $1.1401 from $1.1383.


Category: FinanceAsia

Print This Post