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BUSINESS Wednesday 13 June 2018
A25

US, global stock markets mixed after Trump-Kim summit

By KEN SWEET end to its stimulus program,
NEW YORK (AP) — U.S. and while on Friday the Bank of
global stock markets were Japan is due to give its lat-
mostly higher Tuesday as est policy update.
investors reacted calmly to INFLATION: The govern-
the outcome of a meeting ment said that U.S. con-
between President Donald sumer prices rose 0.2 per-
Trump and North Korean cent in May, with surging
leader Kim Jong Un. gasoline costs driving much
KEEPING SCORE: The Dow of the increase. The Labor
Jones industrial average Department said Tuesday
was up 5 points, or less than that the consumer price
0.1 percent, to 25,327 as of index climbed 2.8 percent
1 p.m. Eastern. The S&P 500 last month from a year ear-
index rose 5 points, or 0.2 lier, putting inflation on its
percent, to 2,787 and the fastest annual pace since
Nasdaq composite rose 42 February 2012. But core
points, or 0.6 percent, to prices — which exclude the
7,702. volatile food and energy
SUMMIT WATCH: Trump categories — have risen a
and Kim concluded their milder 2.2 percent over the
summit by committing to past 12 months.
working "toward complete Fed officials have been
denuclearization of the closely watching inflation
Korean Peninsula" and to data, since they have a
"build a lasting and stable target of inflation being
peace regime" on the Ko- roughly 2 percent per year.
rean Peninsula. Since core inflation is still
The broad promises large- This April 5, 2018, file photo shows part of the trading floor of the New York Stock Exchange. tame likely means that the
ly reiterated past agree- Associated Press Federal Reserve will raise in-
ments, while many of the terest rates only gradually.
details were left vague and Varathan of Mizuho Bank in $85 billion merger and re- attention will focus more on ENERGY: Benchmark U.S.
there was no agreement Singapore of the Trump-Kim jection likely would chill fu- how many additional rate crude rose 35 cents to
on ending the technical summit. ture big mergers, including hikes Fed officials may do $66.45 a barrel. Brent crude,
state of war between North ON THE DEFENSIVE: Follow- possible multi-billion dollar this year. On Thursday, the used to price international
and South Korea. A poten- ing the Trump-Kim summit, deals between 21st Cen- European Central Bank will oils, fell 7 cents to $76.40
tial deal has the chance of shares of weapons makers tury Fox and Walt Disney; meet and could outline an per barrel in London.q
lowering geopolitical ten- and defense contractors Verizon and CBS; and T-Mo-
sions in a region surround- were among the biggest bile and Sprint. Time Warner
ed by three of the world's decliners in the S&P 500. shares were down 40 cents
largest economies: Japan, Raytheon was down nearly to $95.77 and AT&T shares
China and South Korea. 3 percent, Lockheed Martin were up 7 cents to $34.25.
ANALYST'S TAKE: "Deal or fell 1 percent and Northrop CENTRAL BANKS: The Fed-
no deal? Just don't ask Grumman fell 1.5 percent. eral Reserve starts a two-
what comprises a 'deal' AT&T WATCH: A federal day meeting on interest
and we are fine. At the risk judge is expected to rule rates on Tuesday. Investors
of sounding a tad frivolous, on the proposed merger of expect the central bank to
that appears to be the truth AT&T and Time Warner after raise its benchmark rate by
of the matter," said Vishnu markets close Tuesday. The a quarter of a percentage
Trump administration has point to a range of 1.75-2
sued to block the proposed percent. However investors'