SINGAPORE (AP) — World markets were mostly lower on Tuesday on doubts that a 90-day truce in a tariff battle will allow the U.S. and China to resolve issues ranging from technology development to trade. The dollar fell against the Japanese yen.
KEEPING SCORE: In Europe, Germany's DAX shed 0.8 percent to 11,377.36 and France's CAC 40 slipped 0.7 percent to 5,016.76. Britain's FTSE 100 fell 0.1 percent to 7,058.49. Wall Street was set for early losses. Dow futures retreated 0.7 percent to 25,665.00 and the broader S&P 500 future contract lost 0.6 percent to 2,774.20.
ASIA'S DAY: Japan's Nikkei 225 index gave up 2.4 percent to 22,036.05 and the Kospi in South Korea lost 0.8 percent to 2,114.35. Hong Kong's Hang Seng added 0.3 percent to 27,260.44. The Shanghai Composite index picked up 0.4 percent to 2,665.96. Both Chinese indexes finished more than 2 percent higher on Monday. The S&P ASX/200 in Australia gave up 1 percent to 5,713.10. India's Sensex lost 0.3 percent to 36,134.31.
U.S.-CHINA TRUCE: On Monday, U.S. Treasury Secretary Steven Mnuchin told reporters that that Presidents Donald Trump and Xi Jinping's agreement to halt tariff increases to allow time for talks on a festering trade dispute involved 142 items. Those need to be turned into a "real agreement" in the coming months, he said. This includes tariffs on U.S. auto imports, which China raised from 10 to 40 percent in July. Trump tweeted that China has agreed to "reduce and remove" these, without elaborating on the timeline and conditions. China has not confirmed that.
ANALYST'S TAKE: "Markets are reflecting a fragile truce between the U.S. and China after an initial sigh of relief. Investors are taking some money off the table as they figure out the details of what the leaders have agreed to and how long the truce can last," said Song Seng Wun, an economist at CIMB Private Banking.
BREXIT DEBATE: British Prime Minister Theresa May will address Parliament later on Tuesday. She will kick off a five-day debate, culminating in a vote on a deal that will cement Britain's exit from the European Union. The deal, brokered between May and 27 other European leaders, has been widely criticized at home. Britain is set to leave the bloc on March 29.
ENERGY: Oil prices are rallying ahead of an OPEC meeting on Thursday, where members are expected to agree to cut output in 2019. Benchmark U.S. crude gained $1.27 cents to $54.22 per barrel in electronic trading on the New York Mercantile Exchange. It added $2.02 to settle at $52.95 a barrel on Monday. Brent crude rose $1.45 cents to $63.12 per barrel. It edged $2.23 higher to $61.69 a barrel in London.
CURRENCIES: The dollar slipped to 112.81 yen from 113.63 yen late Monday. The euro strengthened to $1.1406 from $1.1353.