BEIJING (AP) — Global stock markets were mixed Tuesday after a Chinese envoy said Beijing cannot negotiate its trade dispute with the United States while Washington "holds a knife" of tariff hikes to its neck.
KEEPING SCORE: In early trading, France's CAC 40 gained 0.2 percent to 5,486.71 while London's FTSE 100 shed 2 points to 7,456.66. Germany's DAX added 6 points to 12,356.85. On Monday, the DAX fell 0.6 percent, the CAC 40 lost 0.3 percent and the FTSE 100 dipped 0.4 percent. On Wall Street, futures for the Standard & Poor's 500 index and Dow Jones industrial average were little changed.
ASIA'S DAY: The Shanghai Composite Index lost 0.6 percent to 2,781.14 while Tokyo's Nikkei 225 gained 0.3 percent to 23,940.26. Markets in Hong Kong and Seoul were closed for holidays. Sydney's S&P-ASX 200 declined 1 point to 6,185.90 and India's Sensex lost 0.1 percent to 36,356.90. Benchmarks in Singapore, New Zealand and Bangkok rose while those in Malaysia and Jakarta retreated.
WALL STREET: Industrial companies and banks sank after news reports that China pulled out of possible talks proposed by Washington on ending their fight over Beijing's technology policy. The S&P 500 lost 0.4 percent to 2,919.37. The Dow declined 0.7 percent to 26,562.05. Both the S&P 500 and Dow set record highs last week. General Electric dropped 3.5 percent and 3M declined 1.3 percent.
TRADE FIGHT: A Chinese trade envoy said Beijing cannot negotiate with Washington while the United States "holds a knife" to Beijing's neck with tariff hikes. The conflict stems from U.S. complaints that Beijing steals or pressures companies to hand over technology. On Monday, China issued a report accusing Washington of "trade bullyism" toward other governments. At the same time, both governments imposed new tariffs on each other's goods.
ANALYST'S TAKE: The Chinese criticism suggests Beijing "might prefer to wait out the current U.S. administration, rather than embarking on potentially futile negotiations," said Cheng Wei Liang of Mizuho Bank in a report. "It is increasingly likely that both sides will not resume negotiations for some time, at least until there is a noticeable shift in the political mood on either side."
U.S.-SOUTH KOREA TRADE: President Moon Jae-in signed a new U.S.-South Korean trade agreement with President Donald Trump. It was one of Trump's first successes in renegotiating deals on more favorable terms for the United States. Trump said it will help reduce the U.S. trade deficit and create new opportunities to export U.S. automobiles, pharmaceuticals and agricultural products.
OIL BOOST: Oil prices jumped after a weekend meeting of OPEC and its allies ended with no decision to increase output despite Trump's call for lower prices. Members of the Organization of the Petroleum Exporting Countries met with non-members including Russia. The committee said it saw a "healthy balance between supply and demand." The price rise is notably caused by a recent drop in Iran's supply because of U.S. sanctions.
ENERGY: Benchmark U.S. crude gained 8 cents to $72.17 per barrel in electronic trading on the New York Mercantile Exchange. The contract advanced $1.30 on Monday to close at $72.08. Brent crude, used to price international oils, rose 24 cents to $80.77 per barrel in London. It jumped $2.29 the previous session to $80.53.
CURRENCY: The dollar gained to 112.94 yen from Monday's 112.79 yen. The euro advanced to $1.1763 from $1.1749.