Markets mixed as Trump shows restrained response to China

Markets were mixed on Friday.

The STOXX Europe 600 fell 1.4 percent but the S&P 500 reversed an early decline to close up 0.5 percent.

Earlier in Asia, the Nikkei 225 fell 0.2 percent but the Shanghai Composite rose 0.2 percent.

Early concerns over US-China tension eased somewhat as US President Donald Trump ordered an end to Washington’s special treatment of Hong Kong in response to China's passing of a national security law on the city but did not mention any further trade restrictions.

Economic data on Friday continued to be negative though. Japan's retail sales fell 13.7 percent year-on-year in April while US consumer spending plunged 13.6 percent last month, the biggest drop on record.

However, analysts are looking past these data.

Chris Low, chief economist at FHN, said that if the economy re-opens quickly “without consequence”, consumers’ accumulating savings “represent considerable spending power in the second half”.