G20 Nerves Hit European Stocks, Dollar; Oil Gains

Date: 24 June 2019 - 21:43

News ID: ۶۷۳۷۵

LONDON (Dispatches) -Asian shares were off to a cautious start on Monday as investors pinned their hopes on any signs of a thaw in Sino-U.S. trade negotiations while oil prices firmed on worries over heightened tensions between the United States and Iran.
European stocks stumbled and the dollar dropped to three-month lows on Monday as hopes waned for progress in Sino-U.S. trade talks at this week's G20 meeting and fears grew of a confrontation with Iran.
Investors are waiting to see if Presidents Donald Trump and Xi Jinping can de-escalate a trade war that is damaging the global economy and souring business confidence. The leaders will meet during a G20 summit in Japan.
Pan-European STOXX 600 fell 0.2per cent, reflecting losses in Paris and Milan. Stocks in London were little changed. Germany's export-sensitive DAX fell 0.5per cent after a profit warning by Daimler caused its shares to drop nearly 5per cent.
However, gains in Asia saw the MSCI regional and global stocks gauges rise again towards last week's six-week highs. Wall Street also looked in line for more gains after closing lower on Friday. S&P 500 e-minis pointed to a 0.2per cent rise at the open.
"G20 is turning into a high-stakes poker game for risk, and if the sideline talks between Trump and Xi fail and trigger an escalation in tariffs, the odds of a full-blown global recession increase exponentially," said Stephen Innes, managing partner at Vanguard Markets.
On Monday, Chinese Vice Commerce Minister Wang Shouwen said China and the United States should be willing to compromise in trade talks and not insist only on what each side wants.