Global Shares Bounce Back 05/24 06:15
Global shares have bounced back following an overnight sell-off on Wall
TOKYO (AP) -- Global shares have bounced back following an overnight
sell-off on Wall Street.
Britain's FTSE 100 jumped 0.6% to 7,270.62 early Friday as Prime Minister
Theresa May announced plans to resign as of June 7.
France's CAC 40 added 0.8% to 5,324.03, while Germany's DAX rose nearly 0.9%
U.S. shares also were set to drift higher, with Dow futures rising 0.6% to
25,611.00. S&P 500 futures added 0.6% to 2,837.20.
May plans to step down as U.K. Conservative Party leader but stay on as
caretaker prime minister until a new leader is chosen, a process likely to take
several weeks. She bowed to relentless pressure from her party to quit over her
failure to take Britain out of the European Union on schedule.
That diverted attention only briefly from the main preoccupation for the
markets, trade friction between China and the U.S.
A suggestion by President Donald Trump that he expects to meet with his
Chinese counterpart Xi Jinping at a summit next month in Japan raised hopes for
progress in talks on the festering trade dispute between Beijing and Washington.
But in Asia, the mood was less upbeat.
Japan's benchmark Nikkei 225 fell 0.2% to finish at 21,117.22. Australia's
S&P/ASX 200 lost 0.6% at 6,456.00. South Korea's Kospi dropped 0.7% to 2,045.31.
Hong Kong's Hang Seng edged 0.3% higher to 27,353.93, while the Shanghai
Composite was little changed at 2,852.99.
"Finally, markets appear to be starting to price in the effect of an
extended U.S.-China trade war on global growth," Jeffrey Halley, senior market
analyst at Oanda, said in a commentary.
Stocks ended sharply lower on Wall Street on Thursday in a broad sell-off
that left the benchmark S&P 500 index on track for its third straight weekly
loss and had the Dow Jones Industrial Average down more than 400 points until
Traders sought safety in the bond market, driving bond prices higher, which
pulled the yield on the 10-year Treasury to 2.31%, the lowest level in more
than a year. It was at 2.33% late Friday in Asia.
The stock market has been gyrating since Washington and Beijing escalated
their dispute over trade earlier this month. Now, the two sides have broken off
negotiations and appear set for a long standoff. Investors are concerned that a
prolonged trade war could stunt economic growth and hurt corporate profits.
ENERGY: Benchmark U.S. crude rose 69 cents to $58.60 a barrel in electronic
trading on the New York Mercantile Exchange. It plunged 5.7% to settle at
$57.91 a barrel on Thursday. Brent crude, the international standard, added 80
cents to $68.56 per barrel.
CURRENCIES: The dollar fell to 109.59 Japanese yen from 109.60 yen on
Thursday. The euro strengthened to $1.1183 from $1.1182.
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