· Wall Street’s main stock indexes ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of U.S. tariffs on Chinese goods would take effect on Dec. 15, a potential turning point in a trade dispute between the world’s two largest economies that has convulsed markets.
The Dow Jones Industrial Average .DJI fell 27.88 points, or 0.1%, to 27,881.72, the S&P 500 .SPX lost 3.44 points, or 0.11%, to 3,132.52 and the Nasdaq Composite .IXIC dropped 5.64 points, or 0.07%, to 8,616.18.
The S&P 500 has climbed about 25% so far in 2019, driven by three interest rate cuts by the U.S. Federal Reserve and some relief over corporate profits, along with improved investor sentiment on trade.
Stock futures got a boost in premarket trade when the Wall Street Journal said U.S. and Chinese trade negotiators were laying the groundwork for a delay in the tariffs, but White House economic adviser Larry Kudlow said later that no decision had been made.
A delay would be seen as helping to pave the way for an initial U.S.-China trade deal, optimism over which has helped fuel the market’s recent run to records.
· European stocks ended the session lower on Tuesday after a report that the U.S. will delay implementing the additional tariffs on Chinese goods scheduled for December 15.
The pan-European Stoxx 600 was 0.3% lower at the closing bell, with telecoms stocks leading losses on a decline of 0.8%.
The Wall Street Journal reported on Tuesday that U.S. negotiators had asked Chinese officials to commit to some up front agricultural purchases, while Beijing wants those purchases to be proportional to rollbacks of existing U.S. tariffs.
Britain’s political parties are heading into the home stretch of campaigning ahead of Thursday’s landmark general election, which will be pivotal for Brexit and economic policy. Prime Minister Boris Johnson’s Conservative Party remains favorite to win a majority of seats, but the opinion polls have narrowed in recent weeks.
· Stocks in Asia were little changed in Wednesday morning trade ahead of the U.S. Federal Reserve’s interest rate decision due later in the day stateside.
In Japan, the Nikkei 225 and Topix indexes rose fractionally in early trade. South Korea’s Kospi also added 0.15%.
Meanwhile, Australia’s S&P/ASX 200 rose about 0.3% in morning trade.
Investors await the Fed’s final interest rate decision for the year, expected later Wednesday stateside, with expectations that the central bank will keep the rate on hold.
Reference: CNBC, Reuters
Thai
Eng