Global stocks recover some ground at end of turbulent week

A man walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Aug. 16, 2019. Asian shares were mixed Friday as turbulence continued on global markets amid ongoing worries about U.S.-China trade conflict. (AP Photo/Eugene Hoshiko)
A woman walks past an electronic stock board showing Japan's Nikkei 225 index and NY Dow index at a securities firm in Tokyo Friday, Aug. 16, 2019. Asian shares were mixed Friday as turbulence continued on global markets amid ongoing worries about U.S.-China trade conflict. (AP Photo/Eugene Hoshiko)
A man stands as a car goes by an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Aug. 16, 2019. Asian shares were mixed Friday as turbulence continued on global markets amid ongoing worries about U.S.-China trade conflict. (AP Photo/Eugene Hoshiko)
A man looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Aug. 16, 2019. Asian shares were mixed Friday as turbulence continued on global markets amid ongoing worries about U.S.-China trade conflict. (AP Photo/Eugene Hoshiko)
A man looks at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Friday, Aug. 16, 2019. Asian shares were mixed Friday as turbulence continued on global markets amid ongoing worries about U.S.-China trade conflict. (AP Photo/Eugene Hoshiko)

LONDON — Global stock markets looked set to end a turbulent week on a positive note although worries about the U.S. economy and the trade conflict between the U.S. and China still have the potential to derail Friday's recovery.

Investors in stocks were spooked earlier this week by developments in the U.S. bond market, which was pricing in a likely recession next year. Add in worries over the trade conflict between Washington and Beijing, Brexit, weak economic performance in Germany and political unrest in Hong Kong and stock markets have endured one of their worst weeks this year.

On Friday, amid a dearth of economic data, sentiment appears to have turned more positive, although confidence that it could be sustained for the rest of the session was low.

"Exhausted traders the world over head into the weekend in a more buoyant mood," said Craig Erlam, senior market analyst at OANDA. "While I'd like to think there'll be no more drama in the final hours of trading, I'm just not that optimistic."

In Europe, Germany's DAX was up 1% at 11,523 while France's CAC 40 rose 1.1% at 5,294. The FTSE 100 index of leading British shares was 0.7% higher at 7,115. Trading on the FTSE was delayed by over 90 minutes by what the London Stock Exchange said was a "services issue."

U.S. stocks were poised for solid gains at the open too with Dow futures and the broader S&P 500 futures up 0.9%.

"Despite the positive start today, it seems unlikely that it will be enough to prevent another negative week," said Michael Hewson, chief market analyst at CMC Markets. "Nothing we've heard over the last few days has come close to changing investor concerns that the global economy is on the cusp of a sharp slowdown, and if anything, a lot of the data has only served to reinforce those fears."

Investors are also keeping a close watch on the trade backdrop. Hopes of a swift resolution between the U.S. and China have been dashed and investors appear to be digging in for a protracted dispute. U.S. President Donald Trump has defended his stance once again and insisted that a resolution with China has to be "on our terms."

Earlier in Asia, .Japan's benchmark Nikkei 225 recouped early losses to gain 0.1% and finish at 20,418.81. Australia's S&P/ASX 200 was little changed, inching down less than 0.1% to 6,405.50. South Korea's Kospi fell 0.6% to 1,927.17, while Hong Kong's Hang Seng added 0.9% to 25,734.22. The Shanghai Composite gained 0.3% to 2,823.82.

ENERGY: Oil prices recovered in the slipstream of stocks. Benchmark U.S. crude added 82 cents to $55.29 while Brent crude, the international standard, rose $1.01 to $59.24.

CURRENCIES: The euro was down 0.2% at $1.1079 while the dollar rose 0.2% to 106.32 yen.

People also read these

China's electric vehicle industry shaken by...

Sep 13, 2016

China's electric vehicle industry, a flagship for Beijing's technology ambitions, has been rocked...

Aid groups warn of crisis as Mongolia hit by...

Dec 21, 2016

Another unusually harsh winter in Mongolia that's decimating livestock and sending temperatures to...

Global markets mixed after Wall Street loss

Dec 23, 2016

Asian markets are mostly lower while Europe has gained in early trading ahead of the Christmas...

Chinese delegation open to meeting Trump's team...

Jan 11, 2017

A Chinese official says President Xi Jinping's delegation to the World Economic Forum is open to...

'One China principle' not negotiable, China tells...

Jan 16, 2017

Responding to remarks by Donald Trump, China's Foreign Ministry says the country's "one-China...

About Us

Frontal Report is an emerging leader in all forms of media. We aim to be the leading news brand for readers around the world.

Contact us: sales[at]frontalreport.com

Subscribe Now!