BEIJING (AP) — Global stock markets rose Monday amid uncertainty about an escalating U.S.-Chinese tariff dispute after President Donald Trump said a settlement was possible but his advisers said other nations might add to pressure on Beijing.
KEEPING SCORE: Germany’s DAX rose 0.5 percent to 12,303.24 and France’s CAC 40 advanced 0.2 percent to 5,270.81. London’s FTSE 100 slipped less than 0.1 percent to 7,178.19. On Friday, the DAX lost 0.5 percent, the CAC 40 fell 0.3 percent and the FTSE 100 declined 0.2 percent. On Wall Street, the future for the Dow Jones industrial average rose 0.7 percent and that for the Standard & Poor’s 500 was up 0.6 percent.
TRADE TENSIONS: Trump said Washington and Beijing can settle their tariff dispute but his economic adviser, Larry Kudlow, said a “coalition of the willing” — including Canada, much of Europe and Australia — was being formed to pressure China. Kudlow said while Washington hoped to avoid taking action, Trump “was not bluffing.” Beijing and Washington have threatened to raise tariffs on $50 billion worth of each other’s goods. Trump said the U.S. list might be increased by an additional $100 billion of goods, which prompted China’s government to say it would “counterattack with great strength.”
ANALYST’S TAKE: “The trade tariffs cloud looms into the new week following last Friday’s gyrations as President Donald Trump ramped up the tensions with newly proposed tariffs,” said Jingyi Pan of IG in a report. “Despite conciliatory messages put through over the weekend, investors are expected to remain on edge at the start of the week with more to look for from China.”
ASIA’S DAY: The Shanghai Composite Index rose 0.2 percent to 3,138.29 and Tokyo’s Nikkei 225 advanced 0.5 percent to 21,678.26. Hong Kong’s Hang Seng climbed 1.3 percent to 30,229.58 and Seoul’s Kospi added 0.6 percent to 2,444.08. Sydney’s S&P-ASX 200 gained 0.3 percent to 5,808.70 and India’s Sensex advanced 0.4 percent to 33,772.50. Benchmarks in New Zealand, Taiwan and Southeast Asia also rose.
WALL STREET: Stocks fell on jitters about the possible impact of the tariff dispute on U.S. exporters. Caterpillar, a construction equipment maker, slid 3.5 percent and aircraft manufacturer Boeing lost 3.1 percent. The Dow dropped 2.3 percent, the S&P lost 2.2 percent and the Nasdaq composite slid 2.3 percent.
ENERGY: Benchmark U.S. crude gained 22 cents to $62.28 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $1.48 on Friday to close at $62.06. Brent crude, used to price international oils, added 41 cents to $67.52 in London. It fell $1.22 the previous session to close at $67.11.
CURRENCY: The dollar rose to 107.12 yen from 106.92 yen. The euro edged down to $1.2275 from $1.2282.
– Here are the top five things you need to know in financial markets on Monday, April 9:
1. U.S.-China Trade Spat Eases… For Now
Investors awaited fresh developments on the simmering trade spat between the United States and China after escalating rhetoric last week fueled worries over an all-out trade war between the world’s two largest economies.
Over the weekend, U.S. President Donald Trump tweeted that he was hopeful an agreement could be reached between the two nations on trade.
As well, White House administration officials made the rounds of Sunday talk shows, playing down the possibility that the situation will escalate.
Treasury Secretary Steve Mnuchin told CBS’s “Face the Nation” that he doesn’t “expect there will be a trade war.”
Attention now turns to China’s Boao Forum – the so-called Asian Davos – where Chinese President Xi Jinping will make a much-anticipated speech on Tuesday, which traders are watching for any reference to the trade dispute with the U.S.
Markets have been on edge over how heightened trade tensions between the world’s two largest economies could result in a potential trade war.
2. U.S. Stock Futures Rally Amid Trade Optimism
U.S. stock futures pointed to strong gains at the open, signaling a comeback on Wall Street after a sharp selloff on Friday, as traders again shook off concerns about a U.S.-China trade war.
The coming week marks the start of the first-quarter earnings season on Wall Street, which analysts have been hoping would take market focus away from trade and put it on strong corporate profits.
Elsewhere, in Europe, the continent’s major bourses advanced in mid-morning trade, with most sectors trading in positive territory. Financial stocks contributed the most to the rise with Deutsche Bank (DE:DBKGn) gaining more than 3% following news the German lender has replaced its chief executive, John Cryan, with the senior head of its retail bank, Christian Sewing.
Earlier, in Asia, most of the bourses in the region closed higher, as markets shrugged off declines seen on Wall Street late last week.
3. Dollar Steadies After Post-NFP Slip
The dollar was mostly steady against its major rivals, having retreated late last week following data that showed the U.S. economy created the fewest jobs in six months in March.
The dollar index against a basket of six major currencies was little changed at 89.84, following a drop of 0.4% on Friday. It had set a one-month high of 90.30 ahead of the U.S. nonfarm payrolls report data early Friday, but later lost some steam.
Despite the miss on the jobs number, the data pointed to a pickup in wage gains, which should allow the Federal Reserve to further raise interest rates this year.
In the bond market, the U.S. 10-year Treasury yield inched up to around 2.80%.
There is no first-tier economic data or Fed speakers expected Monday.
4. Oil Prices Firm On Reports Of Syria Airstrike
Oil prices pushed higher to start the week, as traders watched developments out of Syria, after reports an air base near Homs was struck by missiles.
Russia and Syria blamed Israeli warplanes for carrying out the missile strikes on the Syrian air base, hours after U.S. President Donald Trump warned via tweets of a “big price to pay” following reports of a chemical-weapons attack on civilians near Damascus that left 49 dead over the weekend.
The United States denied attacking the Syrian base, and France also said its forces had not carried it out.
5. Zuckerberg To Meet With U.S. Lawmakers
The planned meetings at Capitol Hill are expected to continue through Monday afternoon and include some lawmakers from committees before whom Zuckerberg is due to testify.
Zuckerberg is scheduled to appear before a joint hearing of the U.S. Senate Judiciary and Commerce committees on Tuesday and the U.S. House Energy and Commerce Committee on Wednesday.
The social media firm has come under fire in recent weeks after it revealed that the personal information of up to 87 million users may have been improperly shared with political consultancy Cambridge Analytica.