Risk appetite was dented as questions re:....>

STOCKS: Risk appetite was dented as questions re: the US-North Korea summit

continue to do the rounds, with a North Korean foreign min representative noting

that he will suggest reconsidering the summit, although he did say that the

future of the summit is entirely down to Washington. Elsewhere trade war issues

headlined, with US President Trump instructing Commerce Secretary Ross "to

consider initiating a Section 232 investigation into imports of automobiles,

including trucks, and automotive parts to determine their effects on America's

national security." Ross has obliged.

- The Nikkei 225 lost 1.2%, with JPY strength on the back of broader risk off

flows adding additional weight to the index after the US auto probe weighed

heavily on the auto space. Elsewhere China's CSI 300 shed 0.1%, while the ASX

lost 0.2%.

- The Hang Seng outperformed adding a little over 0.2%, as the energy sector led

the way higher.

- US index futures came under pressure, as the mini Dow lost 65 points and the

e-mini S&P lost 6 points.