Stocks were mixed and Treasuries edged higher with the dollar as investors navigated a slew of political developments from North Korea to Spain. Crude oil extended losses.
The Stoxx Europe 600 Index advanced as the euro fell, while shares in Asia saw modest declines after North Korea offered a measured response to President Donald Trump’s decision to cancel a summit with that country’s leader. Core European bonds climbed as concerns mounted over the leadership of Spain and Italy.
Crude dipped as OPEC members discussed easing output curbs, while Turkey’s lira headed for its biggest five-day decline since the global financial crisis despite this week’s emergency rate hike.
Geopolitics was back on the agenda with President Donald Trump’s letter to the North Korean leader Kim Jong Un, in which he blamed the “tremendous anger and open hostility” in recent statements from Pyongyang for his decision to scrap the meeting.
While North Korea’s government said in a statement that it remained willing to talk with the U.S. at any time, other risks remain. Spain’s biggest opposition party is ready to push for a no-confidence motion against Prime Minister Mariano Rajoy, while global trade tensions linger.
Elsewhere, the euro remained weaker alongside the pound, as Italy’s premier-designate Giuseppe Conte prepares to meet political leaders and the European Union dismissed many of the U.K.’s plans for their post-Brexit relationship.
This article provided by NewsEdge.