Global Stocks Turn Higher, Price Of Oil Keeps Rising
BEIJING (AP) — Global stock markets turned higher Tuesday as investors parsed the latest news in the United States trade disputes, while the price of oil continued to gain on concerns that OPEC countries would not increase production.
KEEPING SCORE: In Europe, France's CAC 40 gained 0.3 percent to 5,494 while London's FTSE 100 rose 0.5 percent to 7,494. Germany's DAX added 0.3 percent to 12,389. On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones industrial average were both up 0.3 percent.
ASIA'S DAY: The Shanghai Composite Index lost 0.6 percent to 2,781.14 while Tokyo's Nikkei 225 gained 0.3 percent to 23,940.26. Markets in Hong Kong and Seoul were closed for holidays. Sydney's S&P-ASX 200 declined 1 point to 6,185.90 and India's Sensex lost 0.1 percent to 36,356.90. Benchmarks in Singapore, New Zealand and Bangkok rose while those in Malaysia and Jakarta retreated.
TRADE: A Chinese trade envoy said Beijing cannot negotiate with Washington while the United States "holds a knife" to Beijing's neck with tariff hikes. The conflict stems from U.S. complaints that Beijing steals or pressures companies to hand over technology. On Monday, both governments imposed new tariffs on each other's goods. Meanwhile, South Korea's President Moon Jae-in signed a new U.S.-South Korean trade agreement with President Donald Trump. It was one of Trump's first successes in renegotiating deals on more favorable terms for the United States. Trump said it will help reduce the U.S. trade deficit and create new opportunities to export U.S. automobiles, pharmaceuticals and agricultural products.
ANALYST'S TAKE: The Chinese criticism suggests Beijing "might prefer to wait out the current U.S. administration, rather than embarking on potentially futile negotiations," said Cheng Wei Liang of Mizuho Bank in a report. "It is increasingly likely that both sides will not resume negotiations for some time, at least until there is a noticeable shift in the political mood on either side."
OIL BOOST: Oil prices continued to rise, with one benchmark hitting a four-year high, after a weekend meeting of OPEC and its allies ended with no decision to increase output despite Trump's call for lower prices. Members of the Organization of the Petroleum Exporting Countries met with non-members including Russia. The committee said it saw a "healthy balance between supply and demand." The price rise is notably caused by a recent drop in Iran's supply because of U.S. sanctions.
Benchmark U.S. crude gained 47 cents to $72.55 per barrel in electronic trading on the New York Mercantile Exchange. The contract advanced $1.30 on Monday to close at $72.08. Brent crude, used to price international oils, rose 89 cents to $82.09 per barrel, its highest in four years. It jumped $2.29 the previous session to $80.53.
CURRENCY: The dollar gained to 112.87 yen from Monday's 112.79 yen. The euro advanced to $1.1764 from $1.1749.