Global stocks mixed after weak China data

SEOUL, Korea, Republic Of – Global stock markets were mixed on Friday with European markets off to a positive start after some Asian markets closed lower on disappointing trade data from China. The U.S. dollar resumed its fall after a brief gain.

KEEPING SCORE: Britain’s FTSE 100 gained 0.4 per cent to 7,318.35 while France’s CAC 40 rose 0.5 per cent to 4,889.20. Germany’s DAX advanced 0.4 per cent to 11,565.87. Futures showed U.S. markets headed for a lacklustre start. Dow futures inched up 0.1 per cent while S&P futures also added 0.1 per cent.

CHINA TRADE: Customs data showed that Chinese exports sank 6.1 per cent in December from a year earlier. In November, China’s exports eked out a 0.1 per cent expansion after shrinking for nine straight months. Imports rose 3.1 per cent from a year earlier.

ANALYST TAKE: “The slowdown is disappointing given signs from recent business surveys, and from Korea and Taiwan’s export data, that global demand continued to strengthen in December,” Julian Evans-Pritchard of Capital Economics said in a research note. The upshot is that while China’s trade performance has improved somewhat over the past year, the lack of a more substantial recovery (particularly in exports) is concerning,” he said.

SAMSUNG: South Korea’s Samsung Electronics fell 3.5 per cent, its first drop in about a week, pulling the benchmark Kospi lower. The share price of the world’s largest maker of memory chips and smartphones had hit new highs in recent weeks, driven by expectations of strong earnings from its semiconductor business. Prosecutors investigating the influence-peddling scandal that prompted the impeachment of President Park Geun-hye have named Lee Jae-yong, Samsung vice chairman, a bribery suspect in the political scandal.

ASIA’S DAY: Japan’s Nikkei 225 index gained 0.8 per cent to 19,287.28. Hong Kong’s Hang Seng index was up 0.5 per cent to 22,937.38. But China’s Shanghai Composite Index fell 0.2 per cent to 3,112.76 and South Korea’s Kospi fell 0.5 per cent to 2,076.79. Australia’s S&P/ASX 200 slumped 0.8 per cent to 5,721.10. Shares gained in Singapore and Indonesia but fell in Taiwan and the Philippines.

OIL: Benchmark crude oil fell 11 cents to $52.90 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 76 cents, or 1.5 per cent, to close at $53.01 a barrel on Thursday. Brent crude, which is used to price oil sold internationally, lost 20 cents to $55.81 per barrel.

CURRENCIES: The dollar turned lower, trading at 114.60 yen from 114.86 yen. The euro strengthened to $1.0647 from $1.0611.