SEOUL, South Korea stocks were lower in Europe and Asia on Tuesday as investor confidence was undermined by political uncertainty in Italy. The US markets were ready to reopen after a vacation.
Keeping SCORE: Britain's FTSE 100 dropped 1.3 percent to 7,633.28 and France's CAC 40 fell 1.6 percent to 5,417.16. The German DAX fell 1.6 percent to 12,655.21. Wall Street had a weak start, S & P futures fell 0.8 percent and Dow futures 0.8 percent.
ANALYST'S TAKE: "Italy's politics dominated overnight, as the geographical gap between Northern European prosperity and Southern European economic struggles is the emotionally charged Italian political front," said Stephen Innes of OANDA. "Things seem to be moving in a positive direction in North Korea, and given all the noise this ruckus has created in the past two weeks, global markets are glad that this summit is taking place."
ITALIAN POLICY: Italy's president has vetoed a Eurosceptic candidate for economics minister proposed by leaders of two populist parties who tried to form a government. President Sergio Mattarella said on Sunday that he refuses to appoint Paolo Savona, whose policy could shake nervous markets and further inflate the country's dizzying debt burden. Instead, he named an economist, Carlo Cottarelli, to lead the country to new elections. The abandonment of a populist government, which investors were worried about, leads to more political insecurity.
NORTH KOREA: Diplomacy accelerated on Tuesday before a potential summit between President Donald Trump and North Korean leader Kim Jong Un as a team of American diplomats in preparatory talks left a Seoul hotel, possibly to continue talks with their North Korean counterparts. In Beijing, South Korean news agency Yonhap reported that high-ranking North Korean official Kim Yong Chol is planning to move to the United States. He would be the longest-serving North Korean official to visit the United States in 1
ASIA DAY: Japan's Nikkei 225 fell 0.6 percent to 22,358.43 while South Korea's Kospi fell 0.9 percent to 2,457.25. The Hong Kong Hang Seng Index fell 1 percent to 30,484.58. The Shanghai Composite Index fell 0.5 percent to 3,120.46. Australia's S & P / ASX 200 added 0.2 percent to 6.013.60. Shares in Taiwan and the Philippines were lower. Most Southeast Asian markets were closed for bank holidays.
ENERGY: Benchmark US crude fell by $ 1.31 or 1.9 percent to $ 66.57 a barrel in electronic trading on the New York Mercantile Exchange. The contract hit $ 2.83 on Monday at $ 67.88 a barrel, down 4 percent on Friday. He was overshadowed by reports that OPEC countries and Russia could soon be pumping more oil. Brent crude used for international oil prices in London increased by 25 cents to $ 75.57 a barrel. CURRENCIES: The dollar fell from 109.42 yen to 108.90 yen while the euro fell from 1.1624 to 1.1548.