Stocks creep higher, dollar retreats after U.S.- North Korea summit

World stocks crept higher on Tuesday while the dollar turned negative after hitting a three-week high at the end of a U.S.-North Korea summit aimed at the denuclearization of the Korean peninsula.

U.S. President Donald Trump and North Korean leader Kim Jong Un pledged to work toward complete denuclearization of the Korean peninsula, while Washington committed to provide security guarantees for its old enemy.

The MSCI All-Country World index .MIWD00000PUS, which tracks shares in 47 countries, was higher by less than 0.1 percent on the day. The dollar .DXY slipped into negative territory in European trade after earlier hitting a three-week high.

Investors had mixed reactions to the summit, which ended with the signing of a joint statement that gave few details on how the goals set by both sides would be achieved.

Others, such as RBC Capital Markets’ head of Asia FX strategy Sue Trinh said although a historic event, there was “nothing particularly game-changing” about the summit and both sides stood far apart on what denuclearization means.

In Asian equity markets, trading was volatile with Japan's Nikkei .N225 paring early gains to close 0.3 percent higher after earlier rising as much as 0.9 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS seesawed between positive and negative territory, and was last up 0.15 percent.

South Korean shares .KS11 were a tad weaker while Chinese shares were buoyant after starting in the red. The blue-chip CSI 300 index .CSI300 jumped about 1.3 percent.

Europe had a muted open, with the pan-European STOXX 600 index up 0.1 percent.

'Fair trade, fool trade', Trump's tweets spew ire on NATO allies, Trudeau

U.S. President Donald Trump fired off a volley of tweets on Monday venting anger on NATO allies, the European Union and Canadian Prime Minister Justin Trudeau in the wake of a divisive G7 meeting over the weekend.

The escalating clash over trade between Washington and some of its closest global partners cast a cloud over Trump’s efforts to make history in nuclear talks in Singapore on Tuesday with Kim Jong Un of North Korea, one of America’s bitterest foes.

Having left the Group of Seven summit in Canada early, Trump’s announcement that he was backing out of the joint communique torpedoed what appeared to be a fragile consensus on the trade dispute between Washington and its top allies.

The communique, which had appeared to have papered over the cracks that surfaced so uncharacteristically at the G7, said the leaders of the United States, Canada, Britain, France, Italy, Germany and Japan were agreed on the need for “free, fair, and mutually beneficial trade” and the importance of fighting protectionism.

Trump’s extraordinary outburst on Monday against NATO allies, the European Union and Canada appeared aimed at striking a chord with voters who support his “America First” agenda.

At the same time, however, it put Trump in the position of going into a crucial summit at odds with countries he needs on his side to pressure North Korea to move toward dismantling a nuclear arsenal that threatens the United States.

It was left to Trump’s aides to figure out how to explain Trump’s airing of grievances against trading partners instead of focusing on his coming talks with Kim, which the president’s supporters hope will provide him with a major foreign policy win.

Kim Jong Un agrees to end war, agrees to denuclearization of Korean Peninsula

Global Stock Markets

The leaders of North and South Korea pledged to "cease all hostile acts" amid a "new era of peace" after a historic summit.

The leaders of North and South Korea signed a declaration Friday stating there would be "no more war" between the neighbors and agreeing to the common goal of "complete denuclearization" on the Korean Peninsula.

The countries, which technically remain in a state of war, heralded the deal as part of "a new era of peace" after a historic summit.

The agreement between North Korea's Kim Jong Un and South Korean President Moon Jae-in also included vows to "cease all hostile acts" and to "transform the Demilitarized Zone into a peace zone."

Moon said he would visit Pyongyang in the fall.
The summit laid the foundation for a meeting between Kim and President Donald Trump, amid concerns about North Korea's nuclear program. Kim has repeatedly threatened to destroy both the U.S and South Korea.

A senior South Korean official later said the declaration confirmed the neighbors were committed to implementing "a nuclear-free Korean Peninsula."

Earlier, Kim and Moon briefly crossed into each other's countries before a meeting that appeared to mark a turning point in one of the world's most dangerous flashpoints.

Kim stepped across a low concrete military demarcation line separating the rival nations and greeted Moon with smiles and handshakes.

As cameras clicked, he took Moon by the hand and invited him to briefly step back into North Korea.

After breaking off for lunch, the leaders met again to plant a commemorative pine tree and strolled together through the village without aides.

Kim made an unconventional attempt to break the ice with a comment about his recent missile tests, according to a briefing to reporters by Moon’s spokesman, Yoon Young Chan.

In the first meeting between North and South leaders in a decade, Kim also said that he looks forward to "making the most of this opportunity so that we have the chance to heal the wounds between the North and the South. Let’s meet more often from now on."

Before the declaration was signed, China applauded the leaders for taking a "historic step" toward peace. Foreign Ministry spokeswoman Hua Chunying told reporters in Beijing that China hopes for "new journey of long-term peace and stability on the peninsula."

With North Korea’s nuclear weapons program having reached what American policymakers describe as a critical stage, expectations are high that Friday's talks will lay the foundation for reduced tensions between Pyongyang and Washington.

The proposed meeting between Kim and Trump would be the first between a sitting U.S. president and a North Korean leader. It is not clear when it would take place, although American officials have said it could be from late May to mid-June. Singapore, Switzerland, Sweden and Mongolia have all been cited as possible venues.

White House press secretary Sarah Huckabee Sanders said in a statement that the U.S. "looks forward to continuing robust discussions in preparation for the planned meeting between President Donald Trump and Kim Jong Un in the coming weeks."

Meetings between leaders of the two Koreas have occurred in the past, in 2000 and 2007, but in each of those instances the South Korean president traveled to Pyongyang.

Friday's summit comes after last week's news that Trump's nominee for secretary of state, Mike Pompeo, recently held one-on-one talks with the reclusive strongman. The U.S. Senate voted to confirm Pompeo on Thursday.