Shares opened higher in Europe on Friday after mostly declining in Asia despite the S&P 500 index’s record high overnight close.
Germany’s DAX added 0.4% to 12,400.10 while the CAC 40 in Paris climbed 0.6% to 5,566.15. Britain’s FTSE 100 rose 0.3% to 7,445.33. U.S. shares looked set for a tepid open with the future contract for the Dow Jones Industrial Average down 0.1% at 26,760.00.
The S&P 500 future lost 0.1 percent to 2,955.90. On Thursday the U.S. benchmark gained 0.9% to 2,954.18, a record high.
Shares retreated in Asia as weak manufacturing data from Japan helped dampen investor sentiment.
A preliminary survey of Japanese manufacturers, the IHS Markit flash purchasing managers index showed indicators dropping, with new orders at the lowest level in three years.
“A soft patch for automotive demand and subdued client confidence in the wake of U.S.-China trade frictions were often cited by survey respondents,” the report said.
Japan’s Nikkei 225 index lost 1.0% to 21,258.64 and the Hang Seng in Hong Kong dropped 0.5% to 28,476.75 as protesters once again took to the streets. South Korea’s Kospi declined 0.3% to 2,125.62 and in Australia, the S&P ASX 200 declined 0.6% to 6,650.80. India’s Sensex lost 0.7%.
The Shanghai Composite index added 0.5% to 3,001.98 as investors awaited signs that President Donald Trump and his Chinese counterpart Xi Jinping might make progress in a meeting planned for next week at the Osaka, Japan, summit of the leaders of the Group of 20 major economies. Shares edged higher in Taiwan and Thailand but fell in Singapore.
The price of U.S. crude oil rose Friday after jumping 5.4% overnight on fears that escalating tensions between the U.S. and Iran could hinder oil shipments through the Strait of Hormuz.
Iran’s Revolutionary Guard said it shot down a U.S. drone over Iranian airspace. U.S. officials said the drone had not violated Iranian airspace. The drone shooting follows an attack last week on two oil tankers near the Gulf of Oman.
Crude prices had been in a bear market just weeks ago, what Wall Street calls a drop of 20% or more.
Benchmark U.S. crude oil picked up 16 cents to $57.23 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international standard, gained 35 cents to $64.80 per barrel. It rose 4.3% Thursday to close at $64.45 a barrel.
The dollar rose to 107.50 Japanese yen from 107.28 yen on Thursday. The euro rose to $1.1302 from $1.1295.