London (AFP) – US-China trade talks in London held markets’ attention on Monday, with Asian stocks rising, Wall Street mixed, and Europe dipping. The London negotiations, following a first round in Geneva last month, aim to quell renewed tariff tensions between Washington and Beijing. New York’s blue-chip Dow index was lower, while the broader S&P 500 was flat and the tech-heavy Nasdaq rose modestly in late morning trading.
Asian shares closed up on hopes of a deal, and in reflection of the positive sentiment in Wall Street from Friday, when US jobs data suggested the American economy was doing well, for now. The dollar, however, dipped amid persistent fears of higher US inflation in the pipeline, influenced by Trump’s generalized tariffs. London, Paris, and Frankfurt indices all closed lower.
While the US economy has been showing resilience, official data on Monday revealed that China’s exports to the United States last month grew at a slower pace than expected, even as they picked up to the EU and Asia. The US-China talks took place following a call between US President Donald Trump and Chinese President Xi Jinping last Thursday. They sought a de-escalation after each had accused the other of violating terms of a tariff reprieve struck in Geneva in mid-May.
“Some kind of accord would be welcome, but they might even be happy if the two sides merely agree to keep talking,” said Chris Beauchamp, chief market analyst at online trading platform IG. “To jaw jaw is better than to (trade) war war, it seems,” he noted in a message to clients. The US side in London on Monday was being led by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer, while Vice Premier He Lifeng headed the Chinese team.
Their meeting was aided by news that Beijing on Saturday approved some applications for rare-earth exports, while US aviation giant Boeing is set to start sending commercial jets to China for the first time since April. Easing China’s export controls on rare-earths was key for Washington, “while China wants the US to rethink immigration curbs on students, restrictions on access to advanced technology including microchips, and to make it easier for Chinese tech providers to access US consumers,” said Kathleen Brooks, research director at XTB. “The outcome of these discussions will be crucial for market sentiment,” she added.
The dollar’s weakness came as economists warned that Trump’s tariffs on most of the world could reignite inflation, and as the US Federal Reserve weighs whether to lower interest rates. In corporate news, entertainment giant Warner Bros. Discovery announced plans to split into two publicly traded companies, sending its share price higher by more than seven percent. One would be a Streaming and Studios company covering film and TV production and catalogs, while the other would be a Global Network company with television brands including CNN and Discovery, along with free-to-air channels in Europe.
US semiconductor maker Qualcomm also announced its acquisition of a UK firm, Alphawave, for $2.4 billion, driven by increased demand for database infrastructure in the AI sector. Alphawave shares in London jumped almost 19 percent, while Qualcomm’s shares rose 3.6 percent in New York.
– Key figures at around 1530 GMT –
New York – Dow: DOWN 0.2 percent at 42,659.60 points
New York – S&P 500: FLAT at 6,001.34
New York – Nasdaq Composite: UP 0.3 percent at 19,579.59
London – FTSE 100: DOWN less than 0.1 percent at 8,832.28 (close)
Paris – CAC 40: DOWN 0.2 percent at 7,791.47 (close)
Frankfurt – DAX: DOWN 0.5 percent at 24,174.32 (close)
Tokyo – Nikkei 225: UP 0.9 percent at 38,088.57 (close)
Hong Kong – Hang Seng Index: UP 1.6 percent at 24,181.43 (close)
Shanghai – Composite: UP 0.4 percent at 3,399.77 (close)
Euro/dollar: UP $1.1421 from $1.1397 on Friday
Pound/dollar: UP at $1.3558 from $1.3529
Dollar/yen: DOWN at 144.41 yen from 144.81 yen
Euro/pound: UNCHANGED at 84.23 pence
Brent North Sea Crude: UP 0.9 percent at $67.06 per barrel
West Texas Intermediate: UP 1.0 percent at $65.25 per barrel
© 2024 AFP
