Global stock markets were mostly lower Monday as investors looked forward to U.S.-Chinese trade discussions as well as the Federal Reserve’s upgrade on its U.S. interest rate forecast.
After an EU Commission indicator of financial sentiment dropped to some 31-month low, benchmarks in Europe were weighed . London’s FTSE 100 lost 0.1percent to 7,424 and Germany’s DAX dropped 0.3percent to 12,284. France’s CAC 40 fell 0.2% to 5,557.
Japanese markets were closed for a vacation and India was shut for elections.
U.S. and Chinese officials hold more negotiations this week on ending a bruising tariff war over Beijing’s technology aspirations. Both sides say they are currently making progress, that has really helped to defuse stress that’s battered on markets that are international.
The Fed board meets Tuesday and is due to issue a statement that the following day on its own interest rate outlook.
“Dealers will be watching for changes in its dovish perspective,” explained Jeffrey Halley of OANDA at a report. “My guess is that these nerves are misplaced, and the Fed will gladly keep its powder contaminated with the optionality to reduce if needed.”
In Asia, the Shanghai Composite Index retreated 0.8% to 3,062.50 along with Sydney’s S&P-ASX 200 lost 0.4% to 6,359.30. Hong Kong’s Hang Seng gained 1 percent to 29,892.81 while the Kospi in Seoul was 1.7% greater at 2,216.43.
Investors are looking to corporate earnings reports, such as Google on Monday, Apple on Thursday on Tuesday and Volkswagen.
For hints on the slowdown in the world economy , Chinese manufacturing surveys this week will likely be watched among economic statistics. China’s economic development rate held stable in the latest quarter inducing optimism the nation’s recession is bottoming out.
The most recent data, along with the Fed report, may provide reasons to”maintain optimism” but”there are indications that optimism is stretched,” said Vishnu Varathan of Mizuho Bank in a report.
“Particularly if China tempers stimulus, ” the Fed hesitates on further easing and also the specifics of a trade deal reveal trouble spots,” he said.
In energy markets, the average U.S. crude fell 18 cents to $63.12 per barrel in electronic trading on the New York Mercantile Exchange. The contract dropped $1.91 on Friday to close at $63.30.
Oil prices rose following OPEC and Russia to restrict production. Costs have climbed after Washington announced it will stop waivers from sanctions for states that import oil from Iran, such as China, India, Japan and South Korea.
The contract fell 2 the prior session to $71.63.
In currency trading, the dollar got to 111.76 yen out of Friday’s 111.58 yen.