Scepticism takes over markets

Singapore - The Trump administration has issued an executive order aimed at banning Huawei equipment from US networks.

Global markets were mostly lower on Friday amid worries that US economic sanctions on Huawei may cast a pall on trade talks with China.
Germany's DAX slid 0.6 per cent to 12,238.94 and the CAC 40 in France lost 0.2 per cent to 5,438.23. Britain's FTSE 100 fell 0.1 per cent to 7,348.62. The Euro Stoxx 50 was down 0.4 per cent to 3,424.64.
In Asia, the Shanghai composite gave up 2.5 per cent to 2,882.30. Hong Kong's Hang Seng lost 1.2 per cent to 27,946.46 and the A-share index on the smaller market in Shenzhen lost 3.3 per cent.
Japan's benchmark Nikkei 225 jumped 0.9 per cent to 21,250.09, while Australia's S&P ASX 200 advanced 0.6 per cent to 6,365.30. The Kospi in South Korea shed 0.6 per cent to 2,055.80.
Shares fell in Taiwan, Singapore and Indonesia but rallied in the Philippines. India's Sensex rebounded, rising 1.44 per cent to 37,930.77.
Wall Street stocks, however, were mostly higher at mid-morning on Friday, largely shaking off trade war-related uncertainty after a report said US consumer sentiment was at a 15-year high.
Near 1535GMT, the Dow Jones Industrial Average was up 0.5 per cent at 25,912.75.
The broad-based S&P 500 added 0.1 per cent at 2,879.62, while the tech-rich Nasdaq Composite shed 0.1 per cent to 7,890.88.
The Trump administration has issued an executive order aimed at banning Huawei equipment from US networks. Another sanction that subjects the Chinese telecommunications giant to strict export controls took effect on Thursday.
China has threatened to retaliate. It remains to be seen how the move will affect trade negotiations, which are expected to continue.
Last Friday, trade talks broke up with no agreement after the US more than doubled tariffs on $200 billion worth of Chinese imports to 25 per cent from 10 per cent.
"The trade issue could still get worse before it gets better, but our view remains that a deal will ultimately be reached to resolve the issue given the economic (and in Trump's case political) damage that would be caused if a deal is not reached," Shane Oliver of AMP Capital said in a commentary.
The dollar eased to 109.60 Japanese yen from 109.85 yen late Thursday. The euro fell to $1.1173 from $1.1178.
China has threatened to retaliate. It remains to be seen how the move will affect trade negotiations, which are expected to continue.
The foreboding grew further as the Communist Party's People's Daily used a front page commentary on Friday to evoke the patriotic spirit of past conflicts, saying the trade war would never bring China down. In terms of how the trade conflict plays out, "the next fortnight will be very, very important", UniCredit strategist Kiran Kowshik said.
 "Chinese counter-tariffs are due on June 1 and if those get effective, I think markets will price in the risk of the US imposing its additional $300 billion of tariffs ahead of the G20 meeting [near the end of June]."
 "The trade issue could still get worse before it gets better, but our view remains that a deal will ultimately be reached to resolve the issue given the economic [and in Trump's case political] damage that would be caused if a deal is not reached," Shane Oliver of AMP Capital said in a commentary.
 Oil prices steadied on Friday. Brent crude was up 5¢ at $72.67 a barrel by 1521GMT. The global benchmark was set to rise nearly 3 per cent this week, having ended last week largely steady and fallen the week before. US West Texas Intermediate crude added 48¢ to $63.35, and was on track for a weekly gain of about 2.7 per cent.
Gold prices, meanwhile, slipped to their lowest in nearly two weeks as the dollar advanced on the back of robust US economic data, putting the metal on track to post its biggest weekly decline in a month.
 Spot gold fell 0.8 per cent to $1,276.34 per ounce as of 1518GMT. The metal is down 0.7 per cent for the week so far, which could be its biggest weekly decline since April. US gold futures were also 0.8 per cent lower at $1,276.20 an ounce.
 The dollar rose as concern about next week's European parliamentary elections dented demand for the euro, while the British pound dropped to a four-month low on worries about Britain's exit from the European Union. Latin American currencies fell to near five-month lows on Friday, wiping out their 2019 gains as the protracted trade war between the United States and China took its toll on riskier assets and a biting recession and high inflation hit Argentina's peso. - AFP, Reuters