Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2018. REUTERS/Brendan McDermid
2018-06-12
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SULAIMANI — World stocks slipped on Tuesday (June 12) and the dollar retreated from a three-week high after a US-North Korea summit aimed at the denuclearization of the Korean peninsula.
US President Donald Trump and North Korean leader Kim Jong-un pledged to work toward complete denuclearization of the Korean peninsula, while Washington committed to providing security guarantees for its old enemy, according to Reuters.
The MSCI All-Country World index, which tracks shares in 47 countries, fell nearly 0.1 percent on the day. The dollar slipped into negative territory in morning trade in Europe after earlier reaching a three-week high. It was last flat on the day.
Investors had mixed reactions to the summit, which ended with the signing of a joint statement that gave few details on how the goals set by both sides would be achieved.
“Any de-escalation is good, because in the background you always have worries about these situations,” said Old Mutual Global Investors European fund manager Ian Ormiston, adding trade conversations over the weekend at the G7 summit were more concerning.
Others, such as RBC Capital Markets’ head of Asia FX strategy Sue Trinh said there was “nothing particularly game-changing” about the summit and both sides stood far apart on what denuclearization means.
“To the US, it means North Korea must deliver complete, verifiable and irreversible denuclearization. To Kim, it means North Korea suspends nuclear and missile tests in exchange for major economic concessions and the US stepping back as torchbearer for the Asian region.”
In Asian equity markets, trading was volatile with Japan's Nikkei paring early gains to close 0.3 percent higher after earlier rising as much as 0.9 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan seesawed between positive and negative, and was last up 0.15 percent. South Korean shares were weaker while Chinese shares were buoyant after starting in the red. The blue-chip CSI 300 index jumped about 1.3 percent.
Europe had a muted open, with the pan-European STOXX 600 index last up less than 0.1 percent. Futures indicated a lower open on Wall Street.
(NRT/Reuters)