Overnight Markets: stocks in Asia, Europe defy tariff hike on China – Citywire USA

Stocks in Europe and Asia bounced back while US equity futures oscillated on Friday after the US carried out its threat and raised tariffs on Chinese goods at midnight and traders awaited countermeasures promised by Beijing.

The Shanghai composite added 3.1%, with Hong Kong’s Hang Seng Index closed 0.82% higher. Elsewhere in Asia, however, the picture was mixed. The Nikkei 225 in Japan fell 0.27% and the Topix also declined fractionally.

In South Korea, the Kospi was up 0.29%, while the ASX 200 in Australia finished 0.25% higher at 6,311.

Trump administration increased tariffs from 10% to 25% on $200 billion worth of Chinese goods on Friday, even as the White House said negotiations will continue. In response, Beijing said it “deeply regrets” the tariff hike and would take countermeasures.

European stocks also stood defiant and gained on Friday in the early morning session despite the US hiking duties on Chinese products.

The pan-European STOXX 600 climbed 0.9% in early deals, with the French CAC 40 and German DAX indexes both rising by 1%. The FTSE 100 was trading 0.62% higher. Technology stocks were the strongest early performers, jumping 1.3%.

In corporate news, share price of Deutsche Post was fractionally down despite the German delivery and supply chain giant reporting that its first-quarter operating profit surged 28% to €1.2 billion.

Telefonica’s shares remained around the flatline after Spanish multinational telecommunications company posted a rise in first-quarter core profit on an organic basis.

Meanwhile, reports on Thursday night revealed seven banks, including Barclays, Citigroup, HSBC and JP Morgan faced EU antitrust fines for rigging the multi-trillion dollar foreign exchange market.

In the US, stock futures were down modestly today as investors reacted to the steepest escalation of the ongoing trade war between the world’s two biggest economies.

Contracts tied to the Dow Jones Industrial Average declined 40 points, futures for the S&P 500 fell 7.45 points, and Nasdaq futures tumbled 12.75 points. The indexes are headed for their worst weekly returns so far in 2019.