World Economy

World Stocks Mixed on US Political Uncertainty

World Stocks Mixed on US Political UncertaintyWorld Stocks Mixed on US Political Uncertainty

Global stocks were mixed Wednesday as worries lingered over political uncertainty in Washington while China was boosted by manufacturing data. The British pound fell on concerns that the general election may be a tighter race than expected.

France’s CAC 40 rose 0.4% to 5,319 while Germany’s DAX gained 0.5% at 12,659. Britain’s FTSE 100 rose 0.5% to 7,561. US shares were set to rise, with Dow and S&P 500 futures both up 0.1%%, AP reported.

An ongoing probe into Russia’s meddling in the 2016 election has set off uncertainty about the administration of President Donald Trump. National Security Adviser Michael Flynn has decided to provide documents to the Senate intelligence committee, while Trump’s personal attorney, Michael Cohen, has rejected a House intelligence committee request for information. Former White House staffer Boris Epshteyn confirmed he has been contacted for information as part of the investigation.

An official monthly survey showed that growth in China’s factory activity was steady last month in a sign that the recovery in the world’s No. 2 economy is holding up. The purchasing’ managers index, or PMI, released Wednesday came in at 51.2 for May.

“This suggests further stabilization of the world’s second largest economy and will allow policy makers more room to carry out the de-leverage campaign in an attempt to reduce the country’s heightened debts,” Margaret Yang Yan, analyst with CMC Markets Singapore, said of the China data.

The pound was volatile after polls and surveys suggested the general election of June 8 might be closer than many had expected. The currency fell below $1.280 on Wednesday before recovering slightly to trade down 0.2% on the day, at $1.283.

Japan’s benchmark Nikkei 225 fell 0.1% to finish at 19,650.57. Australia’s S&P/ASX 200 added 0.1% to 5,724.60. South Korea’s Kospi gained 0.2% to 2,347.38. Hong Kong’s Hang Seng inched down 0.1% to 25,667.10, while the Shanghai Composite was up 0.2% at 3,117.18.

Benchmark US crude lost 99 cents to $48.67 a barrel in New York. It lost 14 cents on Tuesday. Brent crude, the international standard, fell $1.22 to $50.62 a barrel in London.

The dollar fell to 110.78 yen from 111.07 yen late Tuesday in Asia. The euro rose to $1.122 from $1.118.



Add new comment

Read our comment policy before posting your viewpoints