World shares mixed ahead of Trump-Xi meeting at G20 summit

Elaine Kurtenbach, The Associated Press</span>
Published Friday, November 30, 2018 12:09AM EST
Last Updated Friday, November 30, 2018 5:39AM EST

BANGKOK -- World share prices are mixed ahead of a meeting between Presidents Donald Trump and Xi Jinping at the Group of 20 summit this weekend.

KEEPING SCORE: The DAX in Germany fell 0.6 per cent to 11,235.69 and France's CAC40 lost 0.5 per cent to 4,981.48. Britain's FTSE 100 sank 0.8 per cent to 6,983.30. The outlook for U.S. trading was clouded, with the future contract for the Dow Jones Industrial Average down 0.2 per cent at 25,337.00 and S&P 500 futures down 0.3 per cent at 2,735.20.

ASIA'S DAY: Japan's Nikkei 225 index climbed 0.4 per cent to 22,351.06 and the Hang Seng in Hong Kong added 0.2 per cent to 26,506.75. The Shanghai Composite index jumped 0.8 per cent to 2,588.19, while India's Sensex was flat at 36,153.04. South Korea's Kospi fell 0.8 per cent to 2,096.86 while the S&P ASX/200 in Australia tumbled 1.6 per cent to 5,667.20 on heavy selling of financials and consumer goods companies. Shares rose in Taiwan and Singapore but fell in Indonesia.

G20 SUMMIT: The working dinner meeting between Trump and Xi could bring a breakthrough in a bruising trade war that has the U.S. and China imposing punitive tariffs on billions of dollars' worth of each other's exports. Or not. Analysts are not optimistic about prospects for improvement a month before U.S. tariffs on Chinese goods are due to ramp up.

ANALYST'S VIEWPOINT: "As investors shift their attention to the upcoming G-20 Trump-Xi meeting this weekend, Trump has hinted that he is very close to 'doing something with China' on trade," Mizuho Bank said in a market note. "Though a comprehensive agreement is still unlikely, agreeing on a framework for future talks together with a delay in implementation of a 25 per cent tariff hike on $200 billion of Chinese imports" would "constitute a good outcome."

CHINESE MANUFACTURING: A measure of China's factory activity slipped to its lowest level in more than two years in November, adding to pressure on Beijing amid the tariff battle with Trump. The China Federation of Logistics & Purchasing said Friday its monthly purchasing managers' index declined to 50 from October's 50.2 on a 100-point scale on which numbers above 50 indicate activity is increasing. It blamed weak domestic demand for the latest decline. But investors often see such news as a signal more market-boosting stimulus may be coming.

KOREAN RATE HIKE: South Korea's central bank lifted its benchmark rate by a quarter of a per cent to 1.75 per cent despite a sluggish job market and tepid growth. The Bank of Korea's governor, Lee Ju-yeol, said the rate increase would help stabilize financial markets amid government efforts to contain surging housing prices in capital Seoul and rising consumer debt levels.

ENERGY: Benchmark U.S. crude lost 22 cents to $51.23 per barrel in electronic trading on the New York Mercantile Exchange. It rose 2.3 per cent to finish at $51.45 a barrel on Thursday. Brent crude gave up 8 cents to $59.83 per barrel. It edged up 1.3 per cent to $59.51 a barrel in London.

CURRENCIES: The dollar slid to 113.45 yen from 113.48 yen on Thursday. The euro slipped to $1.1373 from $1.1391.

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