ZCZC
BCN-10
WORLD-MARKETS
Stock markets slip as trade war fears resurge
NEW YORK, Nov 22, 2019 (BSS/AFP) – Global stocks retreated Thursday on
continued doubts about US-China trade talks while the OECD slashed its growth
outlook, citing the protracted trade conflict.
Investors, already nervous about the slow progress of the talks, became
even more cautious after both houses of Congress overwhelmingly approved a
bill supporting the pro-democracy movement in Hong Kong and sent it to be
signed by US President Donald Trump.
“A third day in the red for equity markets as the US-China trade deal, or
lack of, continues to dictate market sentiment,” said Craig Erlam, senior
market analyst at Oanda trading group.
Major European markets closed in the red, along with Wall Street.
China on Thursday accused the United States of seeking to “destroy” Hong
Kong and threatened retaliation after Congress passed legislation supporting
the pro-democracy movement that has thrown the city into nearly six months of
turmoil.
Foreign Minister Wang Yi said passage of the Hong Kong Human Rights and
Democracy Act “indulges violent criminals” that China blames for the
worsening unrest and aims to “muddle or even destroy Hong Kong.”
On the other hand, citing unnamed sources, The Wall Street Journal
reported Thursday that Chinese trade envoy Liu He had invited US trade
officials to Beijing for a new round of talks.
US officials are reluctant to make the trip, however, without clear
commitments from Beijing addressing key US complaints, according to the
report.
– Sensitive markets –
“Recent moves in stock markets seem to be almost solely driven by the
latest developments in US-Sino talks,” said XTB chief market analyst David
Cheetham.
“It’s quite remarkable that stock markets in not only New York and
Shanghai but also London and Frankfurt have such a heightened level of
sensitivity in the near term to any news on this front.”
Among individual share moves, investors cheered the market debut of stock
in France’s state-owned lottery monopoly, with eager buyers pushing the stock
up sharply.
MORE/HR/1002
ZCZC
BCN-11
WORLD-MARKETS 2 LAST NEW YORK
On the macro front, the OECD grouping of the world’s wealthiest nations on
Thursday trimmed its outlook for the global economy, saying the world was
headed for its weakest economic growth since the 2007-2008 financial crisis.
Urging governments to invest in digital and climate transformation, the
Organization for Economic Co-operation and Development said activity had been
hobbled by weaker trade and investment in the past two years, as Trump and
China continue to be locked in a trade conflict.
Oil prices rose as investors expected next month’s OPEC summit to agree on
an extension of current production cuts.
– Key figures around 2140 GMT –
New York – Dow: DOWN 0.2 percent at 27,766.29 (close)
New York – S&P 500: DOWN 0.2 percent at 3,103.54 (close)
New York – Nasdaq: DOWN 0.2 percent at 8,506.21 (close)
London – FTSE 100: DOWN 0.3 percent at 7,238.55 (close)
Frankfurt – DAX 30: DOWN 0.2 percent at 13,137.70 (close)
Paris – CAC 40: DOWN 0.2 percent at 5,881.21 (close)
EURO STOXX 50: DOWN 0.1 percent at 3,679.66 (close)
Tokyo – Nikkei 225: DOWN 0.5 percent at 23,038.58 (close)
Hong Kong – Hang Seng: DOWN 1.6 percent at 26,466.88 (close)
Shanghai – Composite: DOWN 0.3 percent at 2,903.64 (close)
Euro/dollar: DOWN at $1.1059 from $1.1073 at 2100 GMT
Pound/dollar: DOWN at $1.2907 from $1.2924
Euro/pound: DOWN at 85.67 pence from 85.68 pence
Dollar/yen: DOWN at 108.60 yen from 108.61 yen
Brent North Sea crude: UP 2.5 percent at $63.97 per barrel
West Texas Intermediate: UP 2.8 percent at $58.58 per barrel
BSS/AFP/HR/1000