Stock market today: Global shares mostly slip after US markets closed for a holiday

TOKYO –

Global shares mostly declined Tuesday after a meeting between Chinese leader Xi Jinping and Secretary of State Antony Blinken yielded no signs of progress from either side on Taiwan, human rights, technology and other issues of contention.

France’s CAC 40 inched down less than 0.1 per cent to 7,312.73 in early trading, while Germany’s DAX slipped 0.4 per cent to 16,134.01. Britain’s FTSE 100 added nearly 0.1 per cent to 7,592.28. The futures for the Dow Jones Industrial Average and the S&P 500 were down 0.4 per cent.

The Chinese government said the meeting between Xi and the top U.S. diplomat produced “candid and in-depth” talks. Bilateral relations are at their lowest point in decades. Both sides indicated a willingness to cooperate.

“There is no doubt China and the U.S.A. need each other, and their relationship to be back on a more secure footing for mutually beneficial commercial reasons, as well as reducing the risk of actual conflict,” Clifford Bennett, chief economist at ACY Securities said in a commentary.

The Chinese economy is recovering at a slower pace than expected from the disruptions caused by efforts to vanquish COVID-19, leading the central bank to cut its benchmark 1-year loan prime rate on Tuesday by a tenth of a percentage point to 3.55 per cent.

The five year rate was lowered to 4.2 per cent in a move to help ease credit and encourage spending and investment to boost economic activity.

“Recent easing moves suggest that reopening efforts are losing their shine, setting the groundwork for more policy intervention to follow in the months ahead,” Yeap Jun Rong of IG said in a commentary.

In Asian trading, Japan’s benchmark Nikkei 225 inched up less than 0.1 per cent to finish at 33,388.91. Australia’s S&P/ASX 200 added 0.9 per cent to 7,357.80. South Korea’s Kospi lost 0.2 per cent to 2,604.91. Hong Kong’s Hang Seng dipped 1.5 per cent to 19,607.08, while the Shanghai Composite edged down 0.5 per cent to 3,240.36.

U.S. markets were closed Monday for the Juneteenth national holiday.

Markets are also watching the direction of interest rate hikes.

Last week, the Federal Reserve held its benchmark lending rate steady, the first time in 10 straight monthly meetings it hasn’t announced an increase. The Fed warned it could raise rates as often as two more times this year.

In energy markets, benchmark U.S. crude lost 51 cents to US$71.27 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, lost 23 cents to US$75.55 a barrel.

In currency trading, the U.S. dollar edged down to 141.66 Japanese yen from 141.91 yen. The euro cost US$1.0941, up from US$1.0921.