Markets were mixed on Monday.
The S&P 500 rose 0.1 percent to another record high but the STOXX Europe 600 was flat and the Shanghai Composite tumbled 1.4 percent.
“The bigger catalyst for Mainland China’s slump was news out right after the open that the China Integrated Circuit Industry Investment Fund was reducing its ownership of three Mainland publicly traded semiconductor stocks to under 1%,” wrote Brendan Ahern, chief investment officer at Kraneshares, in a note.
More supportive of markets was an announcement by China on Monday that it will lower import tariffs on over 850 products, including frozen pork, from 1 January, as well as some information technology products starting 1 July.
Tom Martin, senior portfolio manager at Globalt, said that China’s actions “are a positive indicator for the de-escalation of tensions” and adds to other positive news on trade that “may help the market continue to drift higher”.
US economic data on Monday were mixed. Orders for durable goods fell 2 percent in November, the biggest decline since May, but new home sales increased 1.3 percent.
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