pcloudy.png
Tuesday June 2nd, 2020 4:53PM

World stock markets retreat after surge on China tariff cut

By The Associated Press
Related Articles
  Contact Editor

Global stock markets retreated Friday as France and Germany reported weak factory data and the death toll from a virus outbreak in China rose further.

Germany's DAX lost 0.3% to 13,533.51 while the CAC 40 in Paris was flat at 6,037.65. Britain's FTSE 100 gave up 0.2% to 7,487.97. On Wall Street, the future contracts for the S&P 500 and the Dow Jones Industrial Average both fell about 0.1%.

Germany reported new manufacturing orders fell 2.1% in December and industrial production dropped 3.5% from a year earlier while France reported factory output fell 2.8%, adding to concerns over slowing growth in Europe.

Investors are looking ahead to U.S. employment figures due out Friday.

Markets got a boost Thursday after Beijing said it will cut duties on $75 billion of U.S. goods as part of a trade truce with Washington. Wall Street closed higher for a fourth day, propelled by gains for technology stocks and strong corporate earnings reports.

China's tariff cut “boosted sentiment," though “gains were tempered by continued concerns around the impact of the coronavirus outbreak,” Mizuho Bank said in a report.

Beijing is also promising tax cuts and other help to businesses in a bid to offset the economic blow from the virus outbreak that has put the world's second-largest economy on lockdown. The extent of potential losses is unclear.

On Friday, there were 31,400 people confirmed infected by the virus worldwide. China confirmed 31,161 cases and 636 deaths as of Friday. More than 310 cases have been confirmed outside mainland China, including two deaths in Hong Kong and the Philippines.

Still, Chinese factories and offices are starting to reopen following an extended Lunar New Year holiday, but companies are forecasting big revenue declines due to the closure of stores, amusement parks, cinemas and other businesses.

Beijing's tariffs reductions, which follow U.S. cuts last month on Chinese goods, are part of a “Phase 1” trade agreement with Washington aimed at ending their fight over China's technology ambitions and trade surplus. There was no indication China altered its cuts in response to the virus outbreak, but the surprise announcement helped to buoy market sentiment.

Japan's Fast Retailing announced it has closed 350 stores, or about half of its 750 outlets in China to comply with quarantine regulations, while Toyota Motor Corp. said it was extending production stoppages at its China factories by an extra week, to Feb. 16. Nissan Motor Co. said January sales of the company and its local partners fell nearly 12% in January from a year earlier due to the virus outbreak and the prolonged holidays.

Hong Kong's Hang Seng index fell 0.3% on Friday to 27,404.27, while the Shanghai Composite Index rebounded, gaining 0.3% to 2,875.96. Tokyo's Nikkei 225 lost 0.2% to 23,827.98.

The Kospi in Seoul sank 0.7% to 2,211.95 and Sydney's S&P-ASX 200 lost 0.4% to 7,022.60. India's Sensex shed 0.4% to 41,135.82. Shares fell in Taiwan and Thailand but rose in Malaysia and Indonesia.

Investors appear to have set aside concerns about the virus this week, mostly focusing instead on encouraging U.S. economic data and company earnings reports.

ENERGY: Benchmark U.S. crude was flat at $50.95 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 20 cents on Thursday. Brent crude, used to price international oils, added 7 cents to $55.00 per barrel in London. It fell 35 cents the previous session to $54.93.

CURRENCY: The dollar declined to 109.92 yen from Thurdsay's 109.97 yen. The euro fell to $1.0964 from $1.0979.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
World stock markets retreat after surge on China tariff cut
Global stock markets have retreated following a surge driven by a Chinese tariff cut on U.S. imports
4:09AM ( 2 minutes ago )
No. 11 Auburn hosts No. 18 LSU in Top 25 SEC showdown
No. 11 Auburn and No. 18 LSU are set for a Southeastern Conference showdown in Auburn Arena
4:00AM ( 11 minutes ago )
Shrinking country: Serbia struggles with population decline
Uros Trainovic remembers when his small mining village in eastern Serbia was a vibrant home to 200 families, had a school of its own, a doctor and a shop
3:31AM ( 41 minutes ago )
Associated Press (AP)
Its Wuhan plants shut, Honda reports quarterly profit drop
Japanese automaker Honda is reporting a nearly 31% dive in its October-December profit as strong demand for its motorcycles failed to make up for falling vehicles sales
2:39AM ( 1 hour ago )
Asian stock markets retreat after surge on China tariff cut
Asian stock markets have retreated following a surge driven by a Chinese tariff cut on U.S. imports
1:45AM ( 2 hours ago )
Messy Iowa caucuses leave cash-poor candidates scrambling
The Iowa caucuses were a massive money drain for Democratic presidential contenders, who poured millions into a contest so plagued by voting glitches that there still isn't a declared winner
12:08AM ( 4 hours ago )
AP Business
Experts scramble, but new virus vaccine may not come in time
The flu-like virus that exploded from China has researchers worldwide once again scrambling to find a vaccine against a surprise health threat, with no guarantee one will arrive in time
8:41PM ( 7 hours ago )
Victims: PG&E still has rickety power line near Paradise
Pacific Gas & Electric is still operating a rickety power line near the one that ignited a 2018 wildfire that wiped out the Northern California city of Paradise
6:57PM ( 9 hours ago )
NY Times publisher's 4Q profit grows as it adds subscribers
The publisher of The New York Times has posted a higher profit for its fourth quarter as the paper continued to add digital subscribers
6:34PM ( 9 hours ago )
AP Business - Corporate News
Trump administration to open free-trade talks with Kenya
The Trump administration says it intends to open free-trade talks with Kenya
5:10PM ( 11 hours ago )
Trump, Kenyan leader talk positive about US-Kenya trade deal
President Donald Trump and Kenyan President Uhuru Kenyatta are sounding a positive note about a future trade deal between the United States and Kenya
2:53PM ( 13 hours ago )
Twitter shares jump on rise in user numbers, revenue
Shares in Twitter have surged after the social media company said its revenue and user numbers exceeded forecasts
1:25PM ( 14 hours ago )
AP Business - Economy
Lagarde: Central banks have less room to combat a downturn
The head of the European Central Bank is warning that the world's central banks have less ammunition at hand to support the economy in a downturn
8:02AM ( 20 hours ago )
Global stocks surge after Trump acquitted, China virus aid
Global stocks are up after President Donald Trump was acquitted in an impeachment trial and China promised tax cuts and other help to businesses reeling from a virus outbreak
7:56AM ( 20 hours ago )
Asia stocks surge after Trump acquitted, China virus aid
Asian stock markets have surged after President Donald Trump was acquitted in an impeachment trial and China promised tax cuts and other help to businesses reeling from a virus outbreak
2:48AM ( 1 day ago )
AP Business - Financial Markets
No. 11 Auburn hosts No. 18 LSU in Top 25 SEC showdown
No. 11 Auburn and No. 18 LSU are set for a Southeastern Conference showdown in Auburn Arena
4:00AM ( 11 minutes ago )
Shrinking country: Serbia struggles with population decline
Uros Trainovic remembers when his small mining village in eastern Serbia was a vibrant home to 200 families, had a school of its own, a doctor and a shop
3:31AM ( 41 minutes ago )
Car makers adjust to virus outbreak, Uniqlo outlets closed
Japanese automaker Nissan Motor Co. has reported sales in China by the company and its partners fell nearly 12% from a year earlier in January due to the outbreak of a virus in central China's Wuhan and extended Lunar New Year holidays in many parts of China
3:23AM ( 49 minutes ago )
Credit Suisse says CEO Thiam resigns amid spying scandal
Credit Suisse CEO Tidjane Thiam says he is resigning after nearly five years on the job, acknowledging that a spying scandal caused “anxiety and hurt” and tarnished the reputation of the top-drawer Swiss bank
3:18AM ( 53 minutes ago )
Betting could be 'X' factor for new pro football league
Knowing its season begins less than a week after one of the biggest betting events in America, the new XFL is embracing sports betting in a major way
3:10AM ( 1 hour ago )