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World stocks shrink from commercial battle for profit



World stocks rose on Friday as investors bet that the intensification of the trade battle between the United States and China will not be a significant obstacle to the economy.

The Stoxx Europe 600 rose 0.2% in the first operations. Asian markets recovered from recent declines to negotiate mostly.

On Wall Street, futures pointed to a broadly flat opening for the S & P 500.

USA. He raised taxes on $ 34 billion of China's exports at midnight on Thursday and the president

Donald Trump

threatened additional tariffs In Beijing, China's Ministry of Commerce issued a statement accusing the United States of "launching the biggest trade war in economic history to date." In response, he said, China is "forcing itself to strike back when necessary."

The growing global trade frictions – beyond China, the Trump administration has also clashed with the European Union, Canada and Mexico – have irritated the stock markets in recent months, which has added to one of its more volatile stretches in years.

Investors expect the impact of trade will debate about the real economy to be limited.

"Commercial threats have to increase significantly to have a real impact on the economy," said Andrew Jackson, head of fixed income at Hermes Investment Management.

Still, Mr. Jackson said that the trade talks increase the nervousness and uncertainty in the market. "Protectionism is still a danger to the markets," he said.

A few minutes before the last Federal Reserve meeting, published on Thursday, revealed the growing concern about how trade policy could curb business investment. The Fed said that some companies reduced or postponed plans for new investments amid uncertain changes in trade policy.

"Fed officials acknowledged growing trade tensions but pointed out that the US economy is very strong," said Jim Reid, an analyst at Deutsche Bank. , in a note for clients.

Investors are looking for more clues about the US economy with the monthly employment report from the Department of Labor.

Economists surveyed by The Wall Street Journal expect the June report to show that employers added 195,000 jobs and the unemployment rate remained at 3.8%, remaining at the lowest level since April 2000.

10-year US Treasury yield fell slightly to 2,833% from 2,840%. Yields move inversely to prices. The WSJ Dollar index, which tracks the dollar against a basket of 16 currencies, fell 0.1%.

German economic data fueled hopes that Europe's largest economy will begin to shake off a weak start to the year. Industrial production rose 2.6% since April, the Economy Ministry said on Friday. Economists in the private sector expected only a fractional increase of 0.1%.

In Asia, Chinese stocks recovered at the close of the session on Friday and the Shanghai Composite rose 0.5%. The Nikkei 225 in Japan rose 1.1%, but both indexes were ready to finish in the week.

In commodities, Brent crude, the world benchmark for the price of oil, fell by 0.1%. Gold fell 0.1%.

Write to us Georgi Kantchev at georgi.kantchev@wsj.com

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