Global shares mostly lower as U.S.-China trade optimism fades

Yuri Kageyama, The Associated Press</span>
Published Thursday, March 7, 2019 12:02AM EST
Last Updated Thursday, March 7, 2019 5:08AM EST

TOKYO -- Global shares were mostly lower Thursday as optimism about progress in trade talks between the U.S. and China appeared to be wearing thin.

France's CAC 40 slipped 0.3 per cent in early trading to 5,271.03, while Germany's DAX lost 0.5 per cent to 11,534.74. Britain's FTSE 100 fell 0.4 per cent to 7,167.60.

U.S. shares also were set to drift lower, with Dow futures down 0.4 per cent at 25,567. S&P 500 futures lost 0.3 per cent to 2,764.

Investors were cautious ahead of a European Central Bank board meeting later in the day.

Disappointing economic reports, uncertainty over trade and fears of a slowdown in economic growth have been weighing on the market the past couple weeks.

Meanwhile, hopes that the U.S. and China will soon resolve their trade dispute has faded, though officials have hinted that some kind of agreement could be finalized by the end of March.

News that the U.S. trade deficit jumped 19 per cent in December, widening the figure to a decade-long high of $621 billion, also rattled the markets.

"Things aren't going to plan in Trump's tariff world with U.S. trade data overnight showing the trade deficit blew out to a 10-year high in 2018," Jeffrey Halley of Oanda said in a commentary. "Whether this hardens the President's attitude to a structural deal with the China trade talks or he chooses a quick win is hard to say," he added.

In Asia, Japan's benchmark Nikkei 225 slipped 0.7 per cent to finish at 21,456.01 and Hong Kong's Hang Seng dipped 0.9 per cent to 28,779.45.

Australia's S&P/ASX 200 edged up 0.3 per cent to 6,263.90, while South Korea's Kospi dropped 0.5 per cent to 2,165.79. The Shanghai Composite gained 0.1 per cent to 3,106.42.

ENERGY: U.S. crude added 35 cents to $56.57 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, added 53 cents to $66.52 a barrel in London.

CURRENCIES: The dollar fell to 111.71 yen from 111.86 yen Wednesday. The euro strengthened to $1.1311 from $1.1304.

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