Global markets subdued ahead of US-China trade pact signing

Full Screen
1 / 4

Copyright 2018 The Associated Press. All rights reserved

A currency trader watches computer monitors at the foreign exchange dealing room in Seoul, South Korea, Monday, Jan. 13, 2020. Asian stocks have risen as investors shrug off weaker-than-expected American jobs data and look ahead to the signing of a U.S.-China trade deal. Benchmarks in Shanghai, Hong Kong and Southeast Asia all advanced. (AP Photo/Lee Jin-man)

BEIJING – Global stock markets were subdued Monday ahead of the signing of an interim U.S.-Chinese trade pact and as concerns about U.S.-Iranian tensions eased.

Indexes in Europe were mixed after Shanghai, Hong Kong and South Korea finished higher. Japanese markets were closed for a holiday and futures pointed to small gains on Wall Street.

Traders are looking ahead to this week's signing of the interim U.S.-Chinese trade deal, which they hope will be a step toward ending a tariff war that threatens to drag down global economic growth.

Markets start the week “on a cautiously optimistic tone" as investors look ahead for the possibility of further U.S.-China trade progress, analysts at Mizuho Bank said in a report.

The “Phase 1” agreement has helped ease market jitters, though economists warn it leaves major disputes unresolved and the outlook for negotiations is unclear.

"Thornier issues such as enforcement may come back to haunt further negotiation progress,” Mizhuo Bank warned.

Investors also were encouraged by U.S. President Donald Trump's decision to resume a regular trade policy dialogue with Beijing that Washington pulled out of in July 2017.

London's FTSE 100 was up 0.2% at 7,605 and Frankfurt's DAX shed 0.3% to 13,449. France's CAC 40 was flat at 6,036.