SEOUL, Korea — Global stock markets meandered in mixed trading on Wednesday following a record high finish for the Dow industrial average. Upbeat corporate earnings reports boosted investor confidence, but Shanghai’s index fell amid news that U.S. is considering investigating China’s demands that American companies share more of their advanced technology.
KEEPING SCORE: Germany’s DAX added 0.1 per cent to 12,268.06 and the CAC 40 of France edged 0.1 per cent lower to 5,124.57. Britain’s FTSE 100 slipped 0.2 per cent to 7,409.85. Wall Street looked set for gains with Dow futures up 0.2 per cent at 21,946.00 and S&P 500 futures 0.1 per cent higher at 2,474.30.
ASIA’S DAY: Japan’s Nikkei 225 rose 0.5 per cent to 20,080.04 and South Korea’s Kospi gained 0.2 per cent to 2,427.63. Hong Kong’s Hang Seng index advanced 0.2 per cent to 27,607.38 while the Shanghai Composite index shed 0.2 per cent to 3,285.06. Australia’s ASX/S&P 200 bucked the region’s trend, falling 0.5 per cent to 5,744.20 as commodity prices dropped. Stocks in Southeast Asia were mostly higher.
CHINA TRADE: President Donald Trump’s administration may use rarely invoked U.S. trade laws to fend off China’s demands that foreign companies share their technology in return for access to the Chinese markets, according to a person familiar with the matter. The law allows Washington to investigate China’s trade practices and raise tariffs on imports from China or impose other sanctions. The move comes as Trump’s administration appears set to adopt a harsher stance toward Beijing than it did during the initial months after the inauguration.
ECONOMIC DATA: Factory output data in China and the U.S. released this week were encouraging, while the Institute for Supply Management reported that U.S. factory production rose again last month though at a slower pace than in June. Later Wednesday, U.S. payroll processor ADP will give its employment updates for July. But the biggest highlight will be the U.S. jobs report due Friday.
ANALYST’S COMMENT: “Tonight, investors will closely watch the ADP private payroll number to assess the health of the jobs market,” said Margaret Yang, a market analyst at CMC Markets in Singapore. “A higher figure indicates rising employment and potential inflation pressure, which will increase the likelihood of rate hikes.”
IPHONE IMPACT: Apple reported Tuesday that its quarterly earnings rose 12 per cent to $8.7 billion, exceeding expectations, as demand for iPhones rose and gave an upbeat revenue forecast for the current quarter, easing concerns about production problems for the next-generation iPhone. Shares of Apple’s suppliers in Asia rose. Samsung Electronics Co. rose 0.8 per cent and LG Display Co. jumped 1.8 per cent. Taiwan-based contract manufacturer Foxconn Technology Co., which assembles Apple’s iPhones, climbed 2.2 per cent.
OIL: Benchmark U.S. crude fell 32 cents to $48.84 per barrel in electronic trading on New York Mercantile Exchange. The contract shed $1.01, or 2 per cent, to close at $49.16 a barrel on Tuesday. Brent crude, the international standard, lost 27 cents to $51.51 per barrel in London. It dropped 94 cents, or 1.8 per cent, to finish at $51.78 a barrel on Tuesday.
CURRENCIES: The dollar rose to 110.86 yen from 110.36 yen. The euro strengthened to $1.1831 from $1.1802.
