World Shares Rise on Thursday 06/27 05:42
World stocks advanced Thursday ahead of a planned meeting between President
Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan this
SINGAPORE (AP) -- World stocks advanced Thursday ahead of a planned meeting
between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit
in Japan this week.
In Europe, France's CAC 40 edged 0.1% higher to 5,505.84 in early trading
and Germany's DAX picked up 0.7% to 12,331.58. Britain's FTSE 100 added 0.1% to
Wall Street was set for gains on the open with the future contract for the
S&P 500 index adding 0.5% to 2,931.70. That for the Dow rose 0.3% to 26,630.00.
The Trump-Xi meeting is undoubtedly the economic highlight of the summit,
held in Osaka, Japan, on Friday and Saturday. Investors hope the presidents
will move toward resolving a trade dispute that has raised business costs and
weighed on global financial markets.
Trump has said he is prepared to place tariffs on $300 billion more in
Chinese products, covering everything China ships to the United States, if the
talks with Xi don't end in progress.
"The Chinese economy's going down the tubes," he said in an interview with
Fox Business Network on Wednesday. "They want to make a deal more than I do."
The South China Morning Post, a Hong Kong newspaper, reported Thursday that
the threatened tariffs were expected to be delayed, citing sources in Beijing
On Wednesday, U.S. Treasury Secretary Steven Mnuchin told CNBC that the two
nations "were about 90% of the way there" with a trade deal. American and
Chinese negotiators have completed 11 rounds of trade talks with no agreement.
"Given the unpredictability of President Donald Trump, it would be unwise to
be unprepared for a possible scenario where talks descend into disagreements on
trade," Lukman Otunuga of FXTM said in a commentary.
"A market-friendly outcome will be for both sides to display cooperation and
a strong interest in further negotiations to ease trade tensions that have
winded the global economy," he added.
Markets in Asia also climbed on trade optimism. Japan's benchmark Nikkei 225
rose 1.2% to 21,338.17 and the Kospi in South Korea climbed 0.6% to 2,134.32.
Hong Kong's Hang Seng was up 1.4% at 28,621.42. The Shanghai Composite jumped
0.7% to 2,996.79 and Australia's S&P/ASX 200 added 0.4% to 6,666.30. Shares
rose in Taiwan and throughout Southeast Asia.
ENERGY: Benchmark U.S. crude lost 39 cents to $58.99 a barrel. It picked up
$1.55 to settle at $59.38 a barrel on Wednesday. Brent crude oil, the
international standard, shed 54 cents to $65.15 a barrel. The contract gained
$1.41 to $65.69 a barrel in the previous session.
CURRENCIES: The dollar rose to 107.93 yen from 107.79 yen late Wednesday.
The euro slipped to $1.1369 from $1.1371.