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Stock markets rise before Trump-Kim summit

AFP  |  London 

Global equity markets rose today as traders brushed off a chaotic meeting to focus instead on US Donald Trump's upcoming with North Korean leader

Investors were also on tenterhooks ahead of this week's and Federal Reserve interest rate decisions.

Stock prices mostly rose despite a contentious (G7) of leading economic powers in which failed to end concerns of a global trade war, dealers said.

"The weekend meeting in didn't disappoint those expecting a dysfunctional atmosphere," said analysts at

"But any market impact over the fall-out appears muted in regards to the magnitude of the summit, as well as looming central from the Big Three: the Fed, the and the Bank of Japan".

Trump pulled out of endorsing a joint communique after the meet finished on Saturday, accusing Canadian Prime Minister and chairman of dishonesty.

"Markets may be too complacent -- but on the G7 split, investors think that a full-scale trade war will not take place. In my view, it is clearly a risk," told AFP.

European equities won support after new Italian minister emphatically ruled out the nation exiting from the single currency, with the stock market up ell over three per cent.

"European markets are rallying mainly because investors are less concerned about as the Italian minister has assured that the country is committed to bring its debt lower," said Naeem Aslam, at trading firm

William Hamlyn, at Manulife Asset Management, told AFP that "markets are in a 'risk on' mode in Europe".

But analyst warned that markets may be failing to take political risk seriously enough, partly because of encouraging signs on the state of the US economy.

"We think that the markets are complacent about the political outlook and don't expect the good on the US economy to last either," she said.

Cryptocurrencies plunged after a hack on a South Korean exchange sparked fresh concerns about the safety of the digital units.

In Asia, the focus was squarely tomorrow's historic summit between and in Singapore, with Pyongyang's nuclear programme top of the agenda.

"Barring any surprises the talks should mark a positive step in terms of easing geopolitical tensions in the region," said analyst

This week is also expected to see the Federal Reserve lift interest rates again, and traders will be poring over its post-meeting statement for an idea about future moves.

That will be followed by the ECB's gathering, which could see policymakers discuss winding down its crisis-era stimulus programme.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, June 11 2018. 22:05 IST
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