BEIJING (AP) — Global stock markets were mixed Wednesday after President Donald Trump cast doubt over the potential for a trade deal with China this year.
London declined in early trading and Shanghai and Tokyo closed lower while France and Germany advanced.
Trump said he has “no deadline” for a trade deal and doesn’t mind waiting until after next year’s presidential election to make one. Investors had hoped for at least enough progress to stave off new U.S. tariffs on Chinese goods, including smartphones and laptops, scheduled to start Dec. 15.
Tensions flared last week after Trump signed legislation expressing U.S. support for pro-democracy demonstrators in Hong Kong.
“Until both sides dial down their hawkish rhetoric, markets will continue to pull back earlier optimism,” said DBS Group analysts in a report. “Trade war will be the key driver of sentiment in the immediate few weeks.”
London’s FTSE 100 gained 0.3% to 7,178.28, while Germany’s DAX gained 0.4% to 13,047.20. France’s CAC 40 advanced 0.5% to 5,757.94.
On Wall Street, futures for the Standard & Poor’s 500 index and Dow Jones Industrial Average were 0.5% higher.
On Tuesday, the benchmark S&P 500 fell 0.7% and the Dow lost 1%. The Nasdaq dropped 0.6%.
In Asia, Tokyo’s Nikkei 225 index sank 1.1% to 23,135.23 and Hong Kong’s Hang Seng gave up 1.3% to 26,062.56.
The Shanghai Composite Index retreated 0.2% to 2,878.13 and Seoul’s Kospi declined 0.7% to 2,068.89. Australia’s S&P-ASX 200 fell 1.6% to 6,606.50 and benchmarks in Taiwan, New Zealand and Southeast Asia also retreated.
India’s Sensex lost 0.2% to 40,578.93.
Negotiators have yet to agree on details of an interim deal Trump has called “Phase 1.”
Investors also are weighing the potential for additional trade disputes.
On Tuesday, Trump proposed tariffs on $2.4 billion in French products in retaliation for a tax on global tech giants including Google, Amazon and Facebook. That follows a threat Monday to raise tariffs on steel and aluminum from Argentina and Brazil.
Also Wednesday, Australia disappointed investors by reporting third-quarter economic growth declined to 0.4% over the previous quarter from 0.6% in the three months ending in June. The Australian central bank had described the economy as experiencing a “gentle upturn.”
ENERGY: Benchmark U.S. crude rose 70 cents to $56.80 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 14 cents on Tuesday to close at $56.10. Brent crude, used to price international oils, rose 77 cents to $61.59 per barrel in London. It lost 10 cents the previous session to $60.82.
CURRENCY: The dollar declined to 108.70 Japanese yen from Tuesday’s 108.63 yen. The euro fell to $1.1068.