Global shares mostly higher as U.S. mulls fresh auto tariffs

Elaine Kurtenbach, The Associated Press</span>
Published Thursday, May 24, 2018 12:21AM EDT
Last Updated Thursday, May 24, 2018 8:42AM EDT

BANGKOK -- World shares are mostly higher despite losses in Tokyo after the Trump administration said it was investigating imposing new tariffs on imports of autos and auto parts.

KEEPING SCORE: Germany's DAX added 0.1 per cent to 12,988.33 and the CAC 40 in France rose 0.4 per cent to 5,588.96. The FTSE 100 in Britain was flat at 7,790.68. The future for the S&P 500 was flat at 2,730.80 and the Dow future contract edged down less than 0.1 per cent to 24,849.00.

TRUMP ON TRADE: China and Japan both condemned the Trump administration's decision to launch an investigation into whether tariffs are needed on imports of vehicles and automotive parts into the United States. China's Commerce Ministry said Beijing would "firmly defend" its rights and interests. Japan's minister of Economy, Trade and Industry, Hiroshige Seko, warned that additional tariffs would put the global market into turmoil. Toyota Motor Corp.'s shares fell 3.1 per cent while Honda Motor Co's shares dropped 3.4 per cent.

ANALYST'S PERSPECTIVE: "Fasten up as this will surely get bumpier with Tariff's, NAFTA and North Korea dominating headlines still," Stephen Innes of OANDA said in a commentary. "The underperformance of emerging market currencies and heightened global geopolitical risks should continue to wear on investors risk appetite."

DEUTSCHE BANK LAYOFFS: Germany's struggling Deutsche Bank said it is cutting its workforce from 97,000 to below 90,000 as it reshapes its stocks trading operation and refocuses its global investment banking business on its European base. It said the reductions were already underway.

ASIA'S DAY: Japan's Nikkei 225 index fell 1.1 per cent to 22,437.01 and the Kospi in South Korea slipped 0.2 per cent to 2,466.01. Australia's S&P ASX 200 edged 0.1 per cent higher to 6,037.10 and the Shanghai Composite index lost 0.5 per cent to 3,154.65. Shares rose in Indonesia, Taiwan and Singapore but fell in Thailand.

ENERGY: Benchmark U.S. crude lost 29 cents to $71.55 per barrel in electronic trading on the New York Mercantile Exchange. It lost 36 cents to $71.84 per barrel on Wednesday. Brent crude, used to price international oils, fell 39 cents to $79.41.

CURRENCIES: The dollar dropped to 109.72 yen from 110.09 yen. The euro rose to $1.1738 from $1.1697.

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