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European equities rallied slightly on Thursday, waving off the Asian markets, as investors waited for the latest developments in the China-China trade dispute and efforts to rewrite the North-South Free Trade Agreement (NAFTA). American pursuit.
The Stoxx Europe 600 gained 0.1% in morning session after closing Wednesday at its lowest level since April. Italian stocks rose by 0.7% as the country's next budget complies with EU deficit rules. Futures revealed a slight opening of gains for US equities.
Trade tensions between the United States and China are back on the agenda, as Thursday marks the last day of public comment on the Trump administration's plan to impose additional tariffs on $ 200 billion dollars of Chinese products. Reports said President Trump could impose tariffs as early as this week.
"In the short term, I think it's not necessarily a big story for the United States," said Jonas Goltermann, an economist at ING. "It's a lot worse for the Chinese."
Chinese investors' pessimism also had an impact on stocks in Hong Kong, with Hang Seng falling 1% on Thursday. Mainland investors reduced their wagers on Hong Kong-listed stocks in August, becoming the fourth month of this year when they sold more Hong Kong stocks than those bought under Hong Kong. of the Stock Connect program launched in 2014.
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Tencent Holdings
,
Hong Kong's most valuable listed company, fell 3.1% to its lowest level in a year.
Elsewhere in Asia, the Shanghai Composite Index and the Japanese Nikkei both fell, dropping by 0.5% and 0.4% respectively. Indonesian equities advanced on Thursday as the benchmark rose 1.6% after posting its biggest one-day drop since November 2016 on Wednesday.
Meanwhile, the United States and Canada have continued negotiations in the latest attempt to reorganize Nafta. Mr Trump said he was ready to go ahead with Mexico only if the United States and Canada fail to hear.
Negotiations take place after Canada posted its largest trade surplus with the United States in almost a decade, according to Statistics Canada on Wednesday. Trump cited the US trade deficit with Canada as the reason for the NAFTA recast.
The Commerce Department said Wednesday that the US trade deficit for the first seven months of the year reached $ 337.9 billion, or $ 22 billion more than a year earlier in a decade. A strong domestic economy stimulating imports, US trade clashes and slower growth abroad have shaken up exports.
In foreign currencies, the pound rose 0.2% to $ 1.2936, as investors struggled to gauge the direction of Brexit negotiations. The currency is down 0.2% this month. The WSJ Dollar Index, which measures the currency against a basket of 16 others, fell by 0.1%.
In the meantime, yields on 10 – year US Treasuries have changed little, from 2.902% to 2.901% on Wednesday. Yields evolve in the opposite of prices.
In terms of raw materials, Brent crude fell 0.2% to $ 77.46 a barrel, and gold 0.2% to $ 1,207.50 an ounce.
-Shen Hong and Joanne Chiu contributed to this article.
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