People walk by an electronic stock board of a securities firm in Tokyo, Wednesday, Aug. 7, 2019. Asian shares were mostly lower Wednesday as markets calmed after China’s decision to stabilize its currency. (AP Photo/Koji Sasahara)

Global shares mixed after China stabilizes currency

August 07, 2019 - 3:46 am

TOKYO (AP) — Global shares were mixed Wednesday as markets calmed after China's decision to stabilize its currency.

France's CAC 40 rose 1.0% in early trading to 5,286.88, and Germany's DAX gained 1.3% to 11,722.72. Britain's FTSE 100 was up 0.5% at 7,210.44. U.S. shares were set to drift higher with Dow futures slightly higher at 25,933. S&P 500 futures were up 0.1% at 2,878.20.

Japan's benchmark Nikkei 225 lost 0.3% to finish at 20,516.56. Australia's S&P/ASX 200 added 0.6% to 6,519.50. South Korea' Kospi slipped 0.4% to 1,909.71. Hong Kong's Hang Seng edged up nearly 0.1% to 25,997.03, while the Shanghai Composite fell 0.3% to 2,768.68.

Wall Street regained its footing Tuesday, a day after its biggest decline in a year which was set off by news that China allowed its currency to depreciate against the dollar to its lowest level in 11 years.

Global investors have grown nervous lately about the possible impact that a trade war between the U.S. and China could have on the economy and corporate profits.

But China's decision to allow its currency to stabilize Tuesday suggests Beijing might hold off from aggressively allowing the yuan to weaken as a way to respond to U.S. tariffs on Chinese goods.

"Markets have gone full circle again hoping for the best while preparing for the worst where even the tiniest gestures could see investors respond more positively than warranted given how emotionally invested market participants are," said Stephen Innes, managing partner at VM Markets in Singapore.

ENERGY:

Benchmark crude oil lost 4 cents to $53.59 a barrel. It fell $1.06 to $53.63 a barrel on Tuesday. Brent crude oil, the international standard, slipped 11 cents to $58.83 a barrel.

CURRENCIES:

The dollar fell to 106.24 yen from 106.40 yen on Tuesday. The euro slipped to $1.1194 from $1.1199.

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AP Business Writers Alex Veiga and Damian J. Troise contributed to this report.

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