Chinese Vice Premier Liu He leaves after a meeting with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin, talks that ended with no agreement but no breakdown (SAUL LOEB)
New York (AFP) – Global stocks largely shrugged off new US tariff measures on China on Friday as officials agreed to continue trade negotiations, while ride-hailing company Uber tumbled in its long-awaited market debut.
Wall Street endured a roller-coaster session, with the Dow shedding more than 350 points early in the session in the hours after Washington raised duties on $200 billion in Chinese imports to 25 percent from 10 percent.
But investors were cheered by President Donald Trump’s upbeat comments after the talks ended with no deal, but also no breakdown. That helped the Dow score a 0.4 percent gain on the session.
“The markets are putting an optimistic spin on very little information,” said Maris Ogg of Tower Bridge Advisors.
“The message we got is more ‘We’ll keep talking, stay tuned,'” she added. “It creates more uncertainty and leaves the market in a limbo.”
Russ Mould, investment director at stockbroker AJ Bell, said markets were adopting a wait-and-see approach despite the latest US tariff measures — and he suspected that a deal would eventually be clinched.
“Investors hate uncertainty as it leads to speculation about what might and might not happen. Once they have the real facts, investors can properly assess the situation,” Mould told AFP.
“I suspect that markets still believe a deal can and will be done, because both President Xi and President Trump need one.”
Earlier, Paris and Frankfurt finished higher, while London and Tokyo fell modestly.
European markets also got a boost from strong economic data, including accelerated British economic growth, and a stronger trade surplus for Germany.
Frankfurt’s Dax index outperformed its European peers largely thanks to a whopping surge in Thyssenkrupp shares which rose over 20 percent after the steel conglomerate said it was dropping its merger plans with Tata of India.
– Speed bump for Uber –
In its market debut, ride-hailing company Uber tumbled 7.6 percent from its initial public offering price, while arch-rival Lyft slumped 7.4 percent.
Both companies have grown rapidly despite heavy losses but some investors are skittish about their prospects for profitability.
The drop was a “big disappointment” and suggested lower demand than expected for a major name like Uber, said Matt Kennedy, senior IPO market strategist at Renaissance Capital.
“Silicon Valley may not care about losses, but Wall Street does,” he said.
– Key figures around 2050 GMT –
New York – Dow: UP 0.4 percent at 25,942.37 (close)
New York – S&P 500: UP 0.4 percent at 2,881.40 (close)
New York – Nasdaq: UP 0.1 percent at 7,916.
London – FTSE 100: DOWN 0.1 percent at 7,203.29 (close)
Frankfurt – DAX 30: UP 0.7 percent at 12,059.83 (close)
Paris – CAC 40: UP 0.3 percent at 5,327.44 (close)
EURO STOXX 50: UP 0.3 percent at 3,361.05 (close)
Tokyo – Nikkei 225: DOWN 0.3 percent at 21,344.92 (close)
Hong Kong – Hang Seng: UP 0.8 percent at 28,550.24 (close)
Shanghai – Composite: UP 3.1 percent at 2,939.21 (close)
Euro/dollar: UP at $1.1239 from $1.1215 at 2100 GMT
Pound/dollar: DOWN at $1.3006 from $1.3014
Dollar/yen: UP at 109.96 yen from 109.74 yen
Oil – Brent Crude: UP 23 cents at $70.62 per barrel
Oil – West Texas Intermediate: DOWN 4 cents at $61.66 per barrel
Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.