A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Wednesday, July 3, 2019. Shares fell back in Asia on Wednesday as the euphoria from President Donald Trump’s truce with China’s Xi Jinping on trade faded. (AP Photo/Eugene Hoshiko)

World shares mixed, Europe advances after fresh S&P 500 high

July 03, 2019 - 5:22 am

TOKYO (AP) — Shares rose in early European trading on Wednesday after the S&P 500 index hit another record high.

Germany's DAX added 0.6% to 12,605.28 while the CAC 40 in Paris also climbed 0.6%, to 5,609.54. Britain's FTSE 100 picked up 0.5% to 7,598.88. U.S. shares looked set for gains ahead of the Independence Day holiday, with the future contract for the S&P 500 up 0.1% at 2,983.90. The future for the Dow Jones Industrial Average also edged 0.1% higher, to 26,833.00.

"With the G-20 Summit in the rear-view mirror, we look around the markets and revert to what are the clear drivers — liquidity, and the view of further aggressive central bank easing and increased money supply," Chris Weston of Pepperstone said in a commentary.

European markets have been buoyed by the nomination of IMF head Christine Lagarde to head the European Central Bank. A former French finance minister, Lagarde has backed the stimulus efforts of the current ECB chief, Mario Draghi, who was credited with defusing the eurozone's debt crisis.

Markets were less upbeat in Asia as the euphoria from President Donald Trump's truce with China's Xi Jinping on trade faded.

The Shanghai Composite index sank 0.9% to 3,015.20 while Japan's Nikkei 225 index lost 0.5% to 21,638.16. The Hang Seng in Hong Kong declined 0.1% to 28,855.14, while South Korea's Kospi lost 1.2% to 2,096.02. Australia's S&P ASX 200 advanced 0.5% to 6,685.50 and the Sensex in India edged 0.2% higher to 39,910.53. Shares fell in Taiwan and most Southeast Asian markets.

Traders are waiting to see what will come from the latest truce in the U.S.-China trade war. They're also looking ahead to a key government jobs report due out Friday, among other potential market-moving developments in the next few weeks.

Trump began ramping up tariffs on Chinese exports a year ago, prompting Beijing to follow suit. The two sides are now imposing punitive tariffs on billions of dollars' worth of each other's products.

Trump and Xi agreed over the weekend to resume trade talks. The United States also agreed not to impose more tariffs on the world's second-largest economy, and to allow sales of technology to Huawei Technologies.

The detente was good news for markets, but tariffs in place have already hurt global economic growth, and investors see that the two sides still face the same differences that caused talks to break down earlier.

"The post-G20 optimism remained short-lived," Ipek Ozkardeskaya of London Capital Group said in a commentary, "as White House trade adviser Navarro reminded investors that agreeing on a trade deal between the U.S. and China will certainly take time, although the countries moved in the right direction at the latest G-20 summit."

Chinese Premier Li Keqiang said Tuesday that China plans to lift foreign ownership limits in securities, futures and life insurance by 2020, a year earlier than originally scheduled. So far, though, Beijing's efforts to soothe trade tensions by accelerating certain markets have not addressed specific complaints from the Trump administration over Chinese industrial policies and the huge, longstanding Chinese trade surplus.

In commodities trading, benchmark crude oil gained 2 cents to $56.27 per barrel in electronic trading on the New York Mercantile Exchange. It fell $2.84 to settle at $56.25 a barrel overnight.

Brent crude, the international standard, shed 4 cents to $62.36 per barrel. It lost $2.66 to close at $62.40 a barrel on Tuesday.

The dollar fell to 107.73 Japanese yen from 107.90 yen on Tuesday. The euro slipped to $1.1284 from $1.1286.

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