World stocks were meandering in sluggish trading on Thursday as investors awaited the inauguration of Donald Trump as U. S. president.
KEEPING SCORE: European shares were mixed in early trading. France’s CAC 40 added 0.1 percent to 4,860.14 and Germany’s DAX gained 0.1 percent to 11,608.95. But Britain’s FTSE 100 edged less than 0.1 percent lower to 7,244.22. U. S. shares were poised to tick lower at the open. Dow futures dipped 0.1 percent to 19,726.00 and broader S&P 500 futures slipped less than 0.1 percent to 2,265.70.
TRUMP WATCH: After a torrid post-election rally, markets are subdued as they wait for Trump to take the oath of office on Friday. Investors are waiting to see how much of his campaign-trail rhetoric will become government policy. Uncertainties over future U. S. trade policy deepened after Trump’s nominee for commerce secretary, billionaire investor Wilbur Ross, slammed China as the « most protectionist » country. « And it’s one thing to talk about free trade. We would like to have our trading partners also practice free trade and do it in a more balanced manner than has been done at present, » Ross told a Senate hearing on his confirmation.
THE QUOTE: « Equity markets have been trading flat ahead of the U. S. presidential inauguration, while the U. S. Treasuries sold off, but certainly, there’s a sense that the post-election honeymoon is over, » Stephen Innes, a senior trader at OANDA, said in a research note. « While the inauguration is dominating headlines, simmering on the back burner is the overriding theme of US protectionism, expressly directed at China. »
ASIA’S DAY: Japan’s Nikkei 225 gained 0.9 percent to end at 19,072.25, lifted by the yen’s weakness, which is a boon to export manufacturers. Australia’s S&P ASX 200 added 0.2 percent to 5,692.20 and South Korea’s Kospi ticked up 0.1 percent to 2,072.79. The Hang Seng in Hong Kong slipped 0.2 percent to 23,049.96 and the Shanghai Composite index lost 0.4 percent to 3,101.30. Shares in Southeast Asia were mostly higher.
TAKATA TUMBLE: Trading in Takata stock was halted as its shares sank after the Japanese business daily The Nikkei reported that potential sponsors for the company’s rehabilitation plan are asking a court to get involved. Many automakers also support such a move after being hit by massive recalls due to defective air bag inflators linked to at least 16 deaths worldwide. Takata Corp. denied the Nikkei’s report. The company has agreed to plead guilty to one count of wire fraud and pay $1 billion in penalties and restitution to automakers and injured drivers.
CURRENCIES: The dollar rose against many of its rivals after sinking sharply against the British pound and other currencies earlier in the week. The dollar rose to 114.75 yen from 114.67 in late trading Wednesday while the British pound fell to $1.2302 from $1.2396. The euro fell to $1.0649 from $1.0709.
ENERGY: Benchmark U. S. crude oil gained 67 cents to $51.75 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.40 to settle at $51.08 a barrel on Wednesday. Brent crude, the international standard, rose 64 cents to $54.56 a barrel in London.
