World shares are mostly higher despite losses in Tokyo after the Trump administration said it was investigating imposing new tariffs on imports of autos and auto parts.
KEEPING SCORE: Germany’s DAX added 0.1 percent to 12,988.33 and the CAC 40 in France rose 0.4 percent to 5,588.96. The FTSE 100 in Britain was flat at 7,790.68. The future for the S&P 500 was flat at 2,730.80 and the Dow future contract edged down less than 0.1 percent to 24,849.00.
TRUMP ON TRADE: China and Japan both condemned the Trump administration’s decision to launch an investigation into whether tariffs are needed on imports of vehicles and automotive parts into the United States. China’s Commerce Ministry said Beijing would “firmly defend” its rights and interests. Japan’s minister of Economy, Trade and Industry, Hiroshige Seko, warned that additional tariffs would put the global market into turmoil. Toyota Motor Corp.’s shares fell 3.1 percent while Honda Motor Co’s shares dropped 3.4 percent.
ANALYST’S PERSPECTIVE: “Fasten up as this will surely get bumpier with Tariff’s, NAFTA and North Korea dominating headlines still,” Stephen Innes of OANDA said in a commentary. “The underperformance of emerging market currencies and heightened global geopolitical risks should continue to wear on investors risk appetite.”
DEUTSCHE BANK LAYOFFS: Germany’s struggling Deutsche Bank said it is cutting its workforce from 97,000 to below 90,000 as it reshapes its stocks trading operation and refocuses its global investment banking business on its European base. It said the reductions were already underway.
ASIA’S DAY: Japan’s Nikkei 225 index fell 1.1 percent to 22,437.01 and the Kospi in South Korea slipped 0.2 percent to 2,466.01. Australia’s S&P ASX 200 edged 0.1 percent higher to 6,037.10 and the Shanghai Composite index lost 0.5 percent to 3,154.65. Shares rose in Indonesia, Taiwan and Singapore but fell in Thailand.
ENERGY: Benchmark U.S. crude lost 29 cents to $71.55 per barrel in electronic trading on the New York Mercantile Exchange. It lost 36 cents to $71.84 per barrel on Wednesday. Brent crude, used to price international oils, fell 39 cents to $79.41.
CURRENCIES: The dollar dropped to 109.72 yen from 110.09 yen. The euro rose to $1.1738 from $1.1697.