Stocks edge lower as U.S.-China relations sour

Stocks edge lower as U.S.-China relations sour

The increasing rhetoric between Washington and Beijing has knocked Wall Street off multi-month highs, although the three main indexes still all rose around 3% for the week, fueled by optimism about an eventual coronavirus vaccine and the easing of virus-related curbs.

Enthusiasm over a coronavirus vaccine and the economy reopening was kept in check Friday, however, as tensions between China and the US rose.

Trading was subdued ahead of the Memorial Day holiday in the U.S. The pan-continental Stoxx Europe 600 retreated 0.4%.

Energy was the big loser on the day, falling 1.5 per cent on a lower crude oil price as Frontera Energy Corp. decreased 5.2 per cent. The gains came as investor optimism over a USA economic reopening counterbalanced renewed China concerns, capping off a volatile week of trading.

Beijing's decision to omit a formal target comes amid the sharpest contraction in four decades precipitated by a sudden halt in manufacturing activity because of the coronavirus pandemic.

Fears of a renewed trade war have cut short Wall Street's April rally and indices are now moving in a tight range, with fresh tariff actions likely to hamper a recovery from the economic shock of Covid-19.

Tensions between the United States and China flared again after Beijing said it would impose new national-security legislation for Hong Kong.

"The market had gotten kind-of used to dealing with the coronavirus and bad economic indicators, but potential disruption from a trade war is proving to be too much for sentiment", said David Madden, a market analyst at brokerage CMC Markets.

Knicks legend, Georgetown coach Patrick Ewing tests positive for coronavirus
The Georgetown coach is under care and isolated at a local hospital, the school's athletic department said in a statement . Ewing, 57, is now "under care and isolated" at a local hospital. "I'll be fine and get through this".

The dollar strengthened as investors moved into haven assets, with the ICE US Dollar Index rising over 0.3%.

Prices for the 10-Year Treasury gained ground, lowering yields to 0.66% from Thursday's 0.68%.

Oil prices retreated, with USA benchmark West Texas Intermediate down about three per cent to trade at US$32.85 per barrel after threatening to breach the US$35 level earlier in the week. "But at the same time, demand is ticking up and supply is ticking down", as Asian countries reopen, he said.

Hewlett Packard Enterprise (HP) fell 8.4% after missing second-quarter revenue and profit estimates, hit by global lockdowns since February.

Amazon finished lower on Thursday after touching a record intraday high earlier in the day.

The Shanghai Composite Index closed at 2,813.77 points, down 54.15 points, or 1.89 percent. That could help stoke broader geopolitical tension, he said. "If we have a second freezing of the economy, then this market is grossly overvalued and the only people that are right now are the bears".

The resurgent U.S. -China standoff weighed on oil prices. The proceeds will be channeled to local governments to help boost employment, consumption and investment. However, the measures have disappointed some Chinese investors, since it meant less capital would flow into shares and property, he said.

Related News:



Most liked

'17% Londoners, 5% of UK residents have COVID-19 antibodies'
If the technique is deemed to be both successful and effective, it will be rolled out nationally within six weeks. Mr Hancock said certificates are being considered for people who test positive for coronavirus antibodies .

Kante stays away from Chelsea training over virus fears
Deeney, meanwhile, has not returned to training because of fears over the safety of his five-month-old son, who has experienced breathing difficulties.

World Bank warns pandemic could push 60 mn into extreme poverty
The programmes will reinforce healthcare systems and also help procure vital life-saving medical equipment and supplies.

Brazil jumps to world No 2 in coronavirus cases, behind the US
However, Bolsonaro focused his efforts on reducing the impact of the epidemic on the economy, which was supported by many people. Bruno Covas, the mayor of Sao Paulo, Brazil, warned that Sao Paulo's health system may collapse within two weeks.

NASA Extends SpaceX Demo-2 Flight Readiness Review Through Today
SpaceX and Boeing are being called upon to carry out six crewed voyages each to the ISS over the next few years. Now, with the launch fast approaching, it's an all-hands-on-deck scenario for SpaceX and NASA staff at Kennedy.

United States demands review of WHO's handling of pandemic starts now, seeks reforms
Nearly five million cases and 325,000 deaths have been registered since the pandemic originated in China five months ago. Trump posted a four-page letter to his Twitter feed with the warning Monday evening and gave Mr.

Trump Says US Won't Close If Hit By Coronavirus Second Wave
Trump won in MI in the 2016 election, the first Republican to do since 1988. Trump jokingly added, "Honestly I think I look better in a mask".

Protesters organize against China security law
Any challenge that Hong Kong can mount to it is going to be overturned by Beijing . China has sovereignty in Hong Kong, but it's supposed to guarantee those rights.

Many feared dead after plane crashes in Pakistan's Karachi
The military quickly was sent to the scene, according to a series of tweets from a spokesperson for Pakistan's armed forces . Foreign minister Shah Mahmood Qureshi said the plane crashed into a residential area minutes before it was due to land.

Over 1 mln unemployment claims filed in Los Angeles County
In the interim, elected officials will await guidance from the state, and the assessment of local doctors and scientists. County officials said Tuesday that they have set a goal of reopening restaurants, retail stores and malls by July 4.

US Senate Passes Bill That Could Block Chinese Companies From Stock Exchanges
These companies have a combined capitalisation of over $1.8 trillion. "I've asked my committees to take a look at what it is". He, however, added that a crackdown could probably backfire and hit exchanges in London and Hong Kong.

Next US coronavirus rescue package not too far off: McConnell By Reuters
The Texas Republican will replace Richard Grenell, the current acting director who has overseen numerous personnel changes. At the same time, Trump has viewed the intelligence agencies with distrust and ousted or fired multiple officials.

Google's Pixel 4a May Have Been Delayed, Yet Again!
Were awaiting for the arrival of the Google Pixel 4a , but the midrange Pixel device keeps getting delayed. According to leaker Jon Prosser , the Pixel 4a will be launched on July 13.

‘Bigg Boss’ ex contestant Shahnaz Gill’s father accused of rape
We are surely disturbed at the moment but we also know nothing is going to happen as we have enough proofs that the lady is lying. While Shehnaaz Gill is yet to give her comments on the same, Santokh's son Shehbaz had responded to the allegations.

Ford Shuts 2 US Assembly Plants Due to COVID-19 Infections
Following are developments Wednesday related to national and global response, the work place and the spread of the virus. Workers who had been in contact with the two infected employees were instructed to self-quarantine for 14 days.