Global shares down on trade dispute
Global stocks took a beating on Thursday as a fresh row between Washington and Beijing over U.S. legislation on Hong Kong threatened to undermine their trade talks and delay a “phase one” deal that investors had initially hoped to be signed by now.
European shares were on course to extend their losses with pan-European Euro Stoxx 50 futures down 0.62%, German DAX futures falling 0.68% and Britain’s FTSE futures down 0.48%.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.2% to a threeweek low, with Hong Kong’s Hang Seng tumbling 1.6% while Japan’s Nikkei dropped 0.4%. Chinese mainland shares dropped 0.3%.
U.S. S&P500 futures were down 0.15%, having dropped as much as 0.6% in Asian trade, a day after all three major indexes fell, with the S&P 500 losing 0.38%.
The U.S. House of Representatives on Wednesday passed two bills intended to support protesters in Hong Kong and send a warning to China about human rights. The legislation, which has angered
Beijing, has been sent to the White House for President Donald Trump’s approval. A person familiar with the matter said Trump was expected to sign it.
The move came as trade experts and people close to the White House said completion of a “phase one” U.S.-China trade deal could slide into next year, as Beijing presses for more extensive tariff rollbacks, and the Trump administration counters with demands of its own. Trump said on the 11 October that the deal could take as long as five weeks, and investors had initially expected an agreement by mid-November.
Oil prices also dipped, paring some of their 2% gains made on Wednesday after a better-than-expected U.S. crude inventories report and as Russia said it would continue its cooperation with OPEC to keep the market balanced.
Global benchmark Brent futures dropped 0.19% to $62.28. U.S. West Texas Intermediate (WTI) crude futures were down 0.16% at $56.92 per barrel in early Thursday trade.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.