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Global Shares Lower on Trade Worries 11/21 05:03
World shares skidded Thursday, tracking moderate declines on Wall Street as
anxiety mounted over the possibility the U.S. and China may not reach a trade
deal before next year.
BEIJING (AP) -- World shares skidded Thursday, tracking moderate declines on
Wall Street as anxiety mounted over the possibility the U.S. and China may not
reach a trade deal before next year.
China's Commerce Ministry on batted away rumors that the talks were in
trouble with a spokesman saying Beijing was committed to continuing discussions
on core concerns.
Germany's DAX lost 0.7% to 13,071.17 while the CAC 40 in France dropped 0.8%
to 5,848.82. Britain's FTSE 100 declined 0.7% to 7,209.60. Wall Street futures
augured further losses, with contracts for the S&P 500 and the Dow Jones
Industrial Average both 0.2% lower.
In Asia, Hong Kong's benchmark Hang Seng index fell 1.6% to 26,466.88. The
Shanghai Composite index lost 0.3% to 2,903.64 while Japan's Nikkei 225 gave up
0.5% to 23,038.58.
A published report suggested the preliminary "Phase 1" trade pact under
discussion with China might not be completed this year as negotiators continue
to wrestle over differences.
Investors have been hoping the world's two biggest economies can reach a
deal before new and more damaging tariffs take effect Dec. 15 on about $160
billion in Chinese imports. Those duties would cover smartphones, laptops and
other consumer goods.
A report by Reuters cited an unnamed Trump administration official saying it
was possible a deal might not be reached, but more likely that it would. The
comments spooked investors already twitchy over the possible blow to the talks
from U.S. Congressional resolutions expressing support for human rights in Hong
Kong, where political protests have dragged on for months.
Beijing wants Washington to first agree to broader tariff rollbacks on
Chinese goods.
Commerce Ministry spokesman Gao Feng told reporters at a weekly news
conference that he had no new information to disclose. But he dismissed
speculation the talks were in trouble, saying "outside rumors are certainly not
correct."
Gao said China is continuing the discussions in hopes of resolving the
disputes over technology and industrial policy for the sake of both countries
and the world as a whole.
Elsewhere in Asia, South Korea's Kospi dropped 1.4% to 2,096.60 and
Australia's S&P ASX 200 lost 0.7% to 6,672.90.
In India, the Sensex edged 0.1% higher to 40,673.75.
Growing optimism among investors that the U.S. and China were making
progress toward a limited trade deal helped pave the way for gains in the
market in recent weeks, including a string of all-time highs for the major
stock indexes.
That optimism dimmed Wednesday as investors weighed the implications of more
tariffs kicking in next month.
The two countries have raised tariffs on billions of dollars of each other's
goods in the fight over China's trade surplus and technology ambitions. That
weighs on trade worldwide and threatens to depress corporate earnings and
global economic growth, which has already showed signs of slowing.
In other trading, benchmark crude oil shed 29 cents to $56.72 per barrel in
electronic trading on the New York Mercantile Exchange. It rose $1.66 on
Wednesday to settle at $57.01 a barrel. Brent crude oil, the international
standard, gave up 37 cents to $62.03.
The dollar slipped to 108.47 Japanese yen from 108.59 yen on Wednesday. The
euro rose to $1.1081 from $1.1075.
(AG)
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