TOKYO (AP) — Global shares were mostly lower on Tuesday as investors watched to see what might come of a planned meeting between President Donald Trump and China’s top leader.
In Paris, the CAC 40 slipped 0.1% to 8,228.81. Germany's DAX fell 0.2% to 24,270.20. Britain's FTSE 100 was nearly unchanged at 9,656.76.
U.S. futures were nearly unchanged.
In Asia, Hong Kong’s Hang Seng dropped 0.3% to 26,346.14, reversing earlier gains, and the Shanghai Composite
index lost 0.2% to 3,988.22 after briefly topping 4,000, its highest level in a decade.
Trump has suggested he expects to forge another trade agreement with Chinese President Xi Jinping when they meet on the sidelines of a Pacific Rim summit in South Korea later this week. That could help alleviate trade tensions that have roiled world markets and disrupted business since Trump's return to the White House.
Japan's benchmark Nikkei 225 lost 0.6% to finish at 50,219.18, falling back after hitting record highs since Sanae Takaichi became prime minister pledging to increase economic stimulus and boost defense spending.
On Tuesday, Trump is meeting with Takaichi, visiting a U.S. military base and then meeting with business leaders in Tokyo. Both sides are reaffirming their security alliance and Japan is promising to abide by Trump's demands for more investments, and bigger role in its own defense and increased imports from the U.S.
Australia's S&P/ASX 200 fell 0.5% to 9,012.50. South Korea's Kospi shed 0.8% to 4,010.41 after the government reported relatively strong quarterly economic growth thanks to strong consumption, investments and exports.
On Monday, U.S. stocks climbed to more records. The S&P 500 rose 1.2% and the Dow industrials added 0.7%. The Nasdaq composite jumped 1.9%.
Among the recent market expectations is that the Federal Reserve will keep cutting interest rates in order to give the slowing job market a boost. The Fed’s next announcement on interest rates is due on Wednesday, and the nearly unanimous expectation among traders is that it will cut the federal funds rate by a quarter of a percentage point at a second straight meeting.
It’s not a certainty though, because the Fed has also warned it may have to change course if inflation accelerates beyond its still-high level. That’s because low interest rates can make inflation worse.
Besides lower interest rates, another expectation that’s propped up stock prices is the forecast that U.S. companies will continue to deliver solid growth in profits. Some of Wall Street’s most influential stocks are set to report their results this week, including Alphabet, Meta Platforms and Microsoft on Wednesday, and Amazon and Apple on Thursday.
In other dealings early Tuesday, benchmark U.S. crude oil shed $1.19 to $60.12 a barrel. Brent crude fell $1.21 to $63.69 a barrel.
The U.S. dollar dropped to 151.78 Japanese yen from 152.88 yen. The euro cost $1.1655, up from $1.1645.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
