Markets Rattled After Trump Backs Hong Kong Protesters
November 28 2019 - 6:50AM
Dow Jones News
By Avantika Chilkoti
Global stocks dipped Thursday on fresh concerns over U.S.-China
relations after President Trump signed a bill supporting Hong Kong
protesters.
The pan-continental Stoxx Europe 600 declined 0.2%, and the
Shanghai Composite Index ended the day down almost 0.5%. While U.S.
markets are closed for the Thanksgiving holiday, futures linked to
the Dow Jones Industrial Average dropped 0.3%.
Mr. Trump's support for the bill, which details U.S. policy
toward Hong Kong and orders an assessment of political developments
there, may raise fresh hurdles in the trade negotiations between
the world's two largest economies. China's Foreign Ministry has
said Beijing is opposed to the bill's signing and threatened
countermeasures if the U.S. doesn't change course, but didn't
specify what those might be.
"It is certainly a notable added complication," said Richard
McGuire, a rates strategist at Rabobank. "But whether China
responds immediately - and how they respond - is obviously the key
question."
Investors' concerns about the impact on the continuing trade war
on the global economy weighed on oil prices, with Brent crude
futures dipping 0.3% to $62.83 a barrel.
Over in the U.K., the FTSE 100 equity benchmark declined 0.5%
after a closely watched poll suggested that Prime Minister Boris
Johnson's Conservative Party is poised to secure a majority in next
month's general election. The British pound rose to a six-month
high, and is trading at about GBP0.85 to the euro.
Among the biggest gainers in Europe was Virgin Money. The
financial-services company gained over 25% in London after
reporting some financial metrics including net interest margin and
capital measures that were better than analysts had expected.
Meanwhile, Rémy Cointreau slipped over 3% in Paris after the
French beverage company's fresh forecasts for the year disappointed
investors.
Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com
(END) Dow Jones Newswires
November 28, 2019 06:35 ET (11:35 GMT)
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