Global Shares Mostly Rise 11/15 07:20
Shares mostly rose on Friday after U.S. governments officials said they were
getting close to an agreement with China to cool tensions over trade.
BANGKOK (AP) -- Shares mostly rose on Friday after U.S. governments
officials said they were getting close to an agreement with China to cool
tensions over trade.
Germany's DAX rose 0.2% to 13,208, and France's CAC 40 gained 0.4% to 5,922.
Futures for the Dow Jones Industrial Average and the S&P 500 were both up 0.3%.
In London, the FTSE 100 shed 0.5% to 7,256 after the opposition Labour Party
widened its electoral campaign promise to re-nationalize big industries with a
plan to take over parts of broadband provider BT to offer free internet. Shares
in BT, a former state phone monopoly, were down over 2%.
The main driver was news about the U.S.-China trade dispute. Markets have
swung from euphoria to alarm as officials offered conflicting opinions about
the state of the negotiations over ending the tariff war between the two
On Thursday, Assistant to the President for Trade and Manufacturing Policy
Peter Navarro said in comments to Fox TV that the two sides were "on a glide
path" toward an agreement.
"We're going to get a great deal," he said when asked about Chinese
officials' expectation that the U.S. roll back some of the billions of dollars'
worth of tariffs imposed by President Donald Trump to get China to change its
trade and technology policies. China has reciprocated with punitive tariffs of
its own. Both sides are feeling the pinch and more tariff hikes could be
imposed in December if the talks fail.
Trump economic advisor Larry Kudlow also said the two sides were close to a
In Asian trading, Japan's Nikkei 225 rose 0.7% to 23,303.23 and the Kospi in
South Korea added 1.1% to 2,162.18. Hong Kong's Hang Seng closed flat at
26,326.66, while the Shanghai Composite index lost 0.6% to 2,891.34.
Australia's S&P ASX 200 advanced 0.9% to 6,793.70, while the Sensex in India
jumped 0.6% to 40,555.95.
Investors hope that Washington and Beijing will reach an agreement to avert
the new and potentially more damaging tariffs that are scheduled to take effect
in the middle of next month. They would hit some popular consumer products,
such as electronic devices. Trump dismissed making any changes to tariffs while
"Trump wants good news to help the economy hold up ahead of the Presidential
election and to offset the impeachment. Going through with the scheduled
December 15 tariff hike on a range of consumer goods would be shooting himself
in the foot," Shane Oliver of AMP Capital said in a commentary.
"Given the ongoing slowing in the Chinese economy and its need for some U.S.
agricultural products it makes sense for it to cut a deal now," he said.
In other trading, benchmark crude oil lost 5 cents to $56.72 per barrel in
electronic trading on the New York Mercantile Exchange. Brent crude oil, the
international standard, lost 24 cents to $62.04 a barrel.
The dollar rose to 108.70 Japanese yen from 108.42 yen on Thursday. The euro
gained to $1.1033 from $1.1022.