Australia

The local share market is set to open lower amid another flare-up in trade relations between the US and China and Donald Trump’s declaration that the US military stands ready in the event of conflict on the Korean Peninsula following his decision to cancel a summit with Kim Jong-un, citing “tremendous anger and open hostility” from Pyongyang.
At 8am (AEST), the Australian share price futures index was down 27 points, or 0.45 per cent, at 6016 points. The Australian dollar is buying 75.77 US cents.
Trump cancelled the June 12 summit with Kim and ordered a probe of auto imports, which added to worries of another potential trade conflict with China.
Trump cancelled the summit even after North Korea followed through on a pledge to blow up tunnels at its nuclear test site.Trump said the US military was “ready if necessary” in the event of a conflict on the Korean peninsula.
The Australian share market yesterday edged higher as weakness among the banks, miners and energy companies was offset by gains by retailers and industrial stocks.
The benchmark S&P/ASX200 was up 4.6 points, or 0.08 per cent, at 6037.1 points, while the broader All Ordinaries index was up 3.8 points, or 0.06 per cent, at 6144.1 points.

Asia

Asian shares fell on Thursday after the US government launched a national security probe into car imports that could lead to new tariffs, and Trump’s comments suggested setbacks in US-China trade talks.
MSCI’s broadest index of Asia-Pacific shares outside Japan was about 0.1 per cent higher, but Japan’s Nikkei stock index fell 1.1 per cent as auto shares slumped. South Korea’s KOSPI lost 0.24 per cent. A broad MSCI index of car and car parts companies fell 1.1 per cent. Tokyo’s SE TOPIX transport equipment index lost three per cent.
The US Commerce Department said on Wednesday that it would launch a national security investigation into car and truck imports under Section 232 of the Trade Expansion Act of 1962, a move that could lead to tariffs like those imposed on steel and aluminium in March.

Europe

Trump’s decision to cancel the summit with Kim weighed on British shares in afternoon trading, while gains in sterling prompted by better retail sales data also bruised the FTSE 100.
The blue chip index closed down 0.92 per cent at 7716.74 points.
A surprise fall in British inflation pushed sterling lower against the dollar, adding headwind to companies whose revenues are in foreign currencies.
On the European mainland, German carmakers Daimler, BMW and Volkswagen dropped 1.7 to 2.8 per cent.Germany’s benchmark DAX index fell 0.94 per cent and Europe’s autos sector was the worst-performing, losing 1.8 per cent.

North America

US stocks mostly eased on Thursday after Trump cancelled the summit and ordered a probe of car imports, while gains in Netflix pushed its market value to a record.
The car probe, ordered on Wednesday, added to worries of another potential trade conflict when tensions with China simmered. Market participants said the sharp drop after the summit was cancelled was a knee-jerk reaction.
A decline in energy shares following lower oil prices also weighed on the market, though some of the weakness was offset by Netflix. The S&P energy index was down 1.7 per cent.
Netflix’s stock market value ballooned to a record $US153 billion ($201.9 million) and eclipsed Walt Disney Co for the first time, making it the world's most valuable entertainment company. Netflix shares were up 1.9 per cent, helping the Nasdaq and S&P 500.
At the close of trade, the Dow Jones Industrial Average was down 75.05 points, or 0.3 per cent, to 24,811.76, the S&P 500 lost 5.53 points, or 0.2 per cent, to 2727.76 and the Nasdaq Composite added 1.53 points, or 0.1 per cent, to 7424.43.
Earlier in the session the blue chip Dow touched a two-week low.

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Lex Hall is a Morningstar content editor, based in Sydney.

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