Global shares mostly rise despite US-China trade worries

Posted on Friday, August 16th, 2019 By Yuri Kageyama, AP Business Writer

TOKYO (AP) — Global shares were mostly higher Friday, although turbulence continued on global markets amid ongoing worries about the U.S.-China trade conflict.

France's CAC 40 rose 0.7% in early trading to 5,275.13, while Germany's DAX gained 0.9% to 11,513.07. Britain's FTSE 100 added 0.8% to 7,122.60. U.S. share were set to drift higher with Dow futures rising 0.9% to 25,810. S&P 500 futures were also higher at 2,875.60, up nearly 1.0%.

Japan's benchmark Nikkei 225 recouped early losses to gain 0.1% and finish at 20,418.81. Australia's S&P/ASX 200 was little changed, inching down less than 0.1% to 6,405.50. South Korea's Kospi fell 0.6% to 1,927.17, while Hong Kong's Hang Seng added 0.9% to 25,734.22. The Shanghai Composite gained 0.3% to 2,823.82.

On Wall Street on Thursday, stock indexes were flipping between gains and losses until a late-day bounce gave the market a modest gain. Worries about a possible recession collided with hopes that the strongest part of the U.S. economy — shoppers spending at stores and online — can keep going.

The major U.S. stock indexes spent much of the day reacting to big moves in U.S. government bond yields, which fell sharply in the early going, fluctuated for much of the day, and then recovered some of their decline by mid-afternoon.

Markets around the world have jerked up and down for weeks. Prices for everything from stocks to gold to oil have been heaving as investors flail from one moment of uncertainty around President Donald Trump's trade war to another around what central banks will do with interest rates.

The U.S.-China trade war has hammered American manufacturers and roiled global financial markets with fears that the world's largest economy could slip into a recession. Yet most analysts expect the U.S. economy to power through the rough patch, at least in the coming months, on the strength of solid consumer spending and a resilient job market.

The U.S. stock market plunged earlier this week when the bond market sent a possible early warning sign of a recession ahead: The yield on the benchmark 10-year Treasury note slipped briefly below 2-year Treasury yields.

Trump again defended his trade war and said a resolution with China has "got to be a deal, frankly, on our terms."

After being hopeful earlier this year that a trade agreement may be imminent between the world's two largest economies, investors are increasingly digging in for the tensions to drag on for years.

"Nonetheless, the wider point is that with U.S.-China uncertainties still elevated, we are acutely aware that signs of risk aversion being reined in must not be mistaken for risk eliminated," said Vishnu Varathan of Mizuho Bank in Singapore.

ENERGY: Benchmark U.S. crude added 81 cents to $55.28. It fell 76 cents to $54.47 per barrel Thursday. Brent crude, the international standard, rose 87 cents to $59.10.

CURRENCIES: The dollar was virtually unchanged at 106.24 Japanese yen from 106.23 yen Thursday. The euro weakened to $1.10856 from $1.1150.

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