A Chinese investor uses a computer terminal as she monitors stock prices at a brokerage house in Beijing, China, Thursday, Aug. 9, 2018. (AP Photo/Mark Schiefelbein)

Global stocks mixed; Chinese markets rally

August 09, 2018 - 6:06 am

SEOUL, South Korea (AP) — Global stock markets were mixed Thursday with European stocks trading lower after Chinese markets finished with sharp gains. Traders focused on the latest developments in the trade dispute between the United States and China, as oil prices resumed their decline.

KEEPING SCORE: Britain's FTSE 100 fell 0.6 percent in early trading to 7,732.40 while Germany's DAX dipped less than 0.1 percent to 12,631.00. France's CAC 40 declined 0.2 percent to 5,489.12. Futures augured a tepid start on Wall Street. S&P futures added 0.1 percent and Dow futures edged up less than 0.1 percent.

ASIA'S DAY: Chinese stocks rallied but other markets in Asia finished mixed. The Shanghai Composite Index jumped 1.8 percent to 2,794.38 and Hong Kong's Hang Seng index advanced 0.9 percent to 28,607.30. Japan's Nikkei 225 slipped 0.2 percent to 22,598.39 while South Korea's Kospi inched up 0.1 percent to 2,303.71. Australia's S&P-ASX 200 was up 0.5 percent to 6,297.70. Stocks in Taiwan, the Philippines and Indonesia were lower.

ANALYST'S TAKE: "Looking at the rhetorical battle between the United States and China recently, it may appear that finding a clue to resolve (the trade war) is impossible," said Lee Seunghoon, an analyst at Meritz Securities Co. in Seoul, South Korea. "But rather than prolonging the trade conflicts, such heated rhetorical battle between the U.S. and China will likely lead to a resumption of negotiations before the U.S. midterm elections." Lee said the actual imposition of additional tariffs by the U.S. on Chinese products could be delayed and concerns about higher consumer prices in the U.S. may discourage President Donald Trump's administration from imposing further tariffs.

TRADE SPAT: The U.S. and China both announced new tariffs. Later this month each country will place a 25 percent tax on $16 billion in goods imported from the other. Both countries placed tariffs on $34 billion in imports earlier this month, and they have threatened much larger tariffs to come. The Trump administration plans to tax Chinese industrial products such as steam turbines and iron girders starting Aug. 23. China's government said it will place tariffs on U.S. goods including cars, crude oil and scrap metal starting on the same date.

OIL: Oil prices extended their declines after a sharp fall the previous session. Benchmark U.S. crude oil lost 26 cents to $66.68 a barrel in electronic trading on the New York Mercantile Exchange. The contract plunged 3.2 percent to finish at $66.94 a barrel on Wednesday. Brent crude, the standard for international oil prices, fell 18 cents to $72.10 per barrel in London. It fell 3.2 percent to $72.28 a barrel in the previous session.

CURRENCIES: The dollar rose to 111.12 yen from 111.02 yen while the euro fell to $1.1597 from $1.1610.

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