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World markets dive as Trump sparks trade, North Korea worries

Global stocks sank Wednesday after US President Donald Trump said he was not satisfied with talks that are aimed at averting a trade war with China. Equities were also dented by poor eurozone economic data, and as Trump cast doubt on a planned summit with North Korean leader Kim Jong Un. “Trump (is) continuing to drive uncertainty over global trade,” said analyst Joshua Mahony at trading firm IG. “European markets are following their Asian counterparts lower, as a pessimistic tone from Trump is compounded by downbeat economic data,” he added. Markets had surged Monday after US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from imposing threatened tariffs on billions of dollars of goods, and continue talks on a variety of trade issues. However, Trump has declared that he was “not satisfied” with the status of the talks, fuelling worries that the world’s top two economies could still slug out an economically pain...

European stock markets mostly fall.

European stock markets mostly fell on Tuesday as the previous day’s rebound faded, while a majority of Asian indices recovered as global volatile trading persists.
Around 1100 GMT, Frankfurt’s DAX 30 was down 0.3 percent compared with the closing level on Monday, as was the CAC 40 in Paris.
Outside the eurozone, London’s benchmark FTSE 100 index gained 0.1 percent as shares in heavyweight mining companies advanced.
On Monday, all major indices on Wall Street and in Europe finished more than one percent higher.
“European markets are failing to follow through on yesterday’s bounce and a decent performance overnight in Asia, with the main bourses in the red… Although the FTSE 100 is marginally in the green,” said Neil Wilson, senior market analyst at ETX Capital traders.
On currency markets Tuesday, the dollar continued to struggle against the yen, with investors seeking solace in the haven Japanese unit. The pound and euro were also stronger.
Elsewhere, the South African rand was being sold on political uncertainty with scandal-tainted President Jacob Zuma reportedly rejected a direct order from the ruling ANC party to leave office.
In Asia on Tuesday, stocks markets mostly rose, tracking the overnight rally in New York after last week’s US battering, but early gains were tempered and Tokyo ended down on lingering uncertainty and worries about further turmoil, traders said.
While some stability has returned to trading floors, investors are keeping a nervous eye on the release Wednesday of key US inflation data.
Global stock markets have plunged this month, with only brief recoveries, as the yield on US Treasury bonds has risen to four-year highs.
This is in response to analysts betting on Federal Reserve interest rates being hiked faster than expected this year on high US inflation.
“The market is trying to find a positive equilibrium, and if we can get through this week’s critical US (inflation data) relatively unscathed, then it would most certainly look as if last week was little more than a corrective episode rather than the commencement of a bear market,” noted Stephen Innes, head of Asia-Pacific trading at Oanda trading group.
Elsewhere on Tuesday, oil prices steadied following recent sharp falls, which the International Energy Agency has blamed on surging crude production in the United States.
“Oil price rises have come to a halt and gone into reverse,” the IEA wrote in its monthly market report published Tuesday, saying the “main factor” behind this was booming US production.
In cryptocurrency trading meanwhile, bitcoin dropped to $8,461 from $8,825 on Monday.
– Key figures around 1100 GMT –
London – FTSE 100: UP 0.1 percent at 7,183.75 points
Frankfurt – DAX 30: DOWN 0.3 percent at 12,246.81
Paris – CAC 40: DOWN 0.3 percent at 5,126.21
EURO STOXX 50: DOWN 0.5 percent at 3,350.46
Tokyo – Nikkei 225: DOWN 0.7 percent at 21,244.68 (close)
Hong Kong – Hang Seng: UP 1.3 percent at 29,839.53 (close)
Shanghai – Composite: UP 1.0 percent at 3,184.96 (close)
New York – DOW: UP 1.7 percent at 24,601.27 (close)
Euro/dollar: UP at $1.2335 from $1.2291 at 2200 GMT
Pound/dollar: UP at $1.3918 from $1.3837
Dollar/yen: DOWN at 107.55 yen from 108.64 yen
Oil – Brent North Sea: UP 14 cents at $62.73 per barrel
Oil – West Texas Intermediate: DOWN four cents at $59.25

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