Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

GLOBAL MARKETS-Hong Kong unrest worries curb global shares rally

Published 27/05/2020, 06:29 pm
© Reuters.
EUR/USD
-
UK100
-
XAU/USD
-
HK50
-
USD/CNY
-
DX
-
GC
-
LCO
-
ESU24
-
CL
-
FTMC
-
DE10YT=RR
-
US10YT=X
-
IT10YT=RR
-
STOXX
-
MIAPJ0000PUS
-
CSI300
-
MIWD00000PUS
-
USD/CNH
-

* European shares advance to 11-week highs

* Hong Kong, China shares hit by new protests

* Yuan falls to lowest since September

* Brent crude futures fall 1.5%

* World FX rates in 2019: http://tmsnrt.rs/2egbfVh

By Tom Arnold and Hideyuki Sano

LONDON/TOKYO, May 27 (Reuters) - Unrest in Hong Kong over Beijing's proposed national security laws weighed on global shares and oil prices on Wednesday, offsetting optimism about the re-opening of the world economy.

Riot police fired pepper pellets on protesters in Hong Kong's main business district, rekindling concern about the protests seen last year that hit the territory's economy. ex-Japan Asia-Pacific index .MIAPJ0000PUS fell 0.4%, as Hong Kong and mainland China shares extended declines. Hong Kong's Hang Seng .HSI fell 1.0% and mainland shares .CSI300 were down 0.8%, amid fears the protests would worsen tensions between the United States and China.

MSCI's index of the world's 49 stock markets .MIWD00000PUS was flat but still close to two-and-a-half-month highs reached on hopes of economic recovery in the developed world as countries ease social restrictions.

Oil prices fell amid U.S.-China tensions and concern over how quickly fuel demand will recover as lockdowns ease. Brent crude LCOc1 futures dropped 1.5%, to $35.62. U.S. West Texas Intermediate crude futures CLc1 were down 1.6%, at $33.79 a barrel. O/R

Still, European shares remained buoyed by hopes for a post- COVID-19 recovery. The STOXX 600 .STOXX added 0.4% to reach its highest level since March 10. Britain's FTSE .FTSE gained 1% and the domestically focused FTSE 250 .FTMC hit an 11-week high as thousands of retailers prepared to re-open on June 1 from a months-long shutdown.

The European Commission is set to introduce a plan to help the European Union economy recover from its coronavirus slump with a mix of grants, loans and guarantees exceeding 1 trillion euros. have two elements going in the right direction. You have the end of lockdown going quite well and PMI (purchasing managers' index) data showing the ability of economies to recover in the second half of the year is still there," said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.

"A lot of good news has been integrated in markets already, but I wouldn't chase them higher as there's still some complacency and there will be a consolidation."

E-Mini futures for the S&P 500 ESc1 rose 0.5% to near their two-and-a-half-month high touched the previous day. The index had cleared 3,000 points in Wall Street overnight before pulling back, as some traders returned to the New York Stock Exchange floor for the first time in two months. China remained in focus after U.S. President Donald Trump said on Tuesday that he was preparing to take action against China this week over its effort to impose national security laws on Hong Kong. relations between the world's two biggest economies could further hobble global business activity, which is already under pressure from the coronavirus pandemic.

The dollar, measured against a basket of currencies, rose 0.1% to 99.146 =USD . Chinese yuan weakened to the lowest levels since early September in both onshore and offshore trade. The onshore renminbi slipped 0.3 to as low as 7.1595 per dollar CNY=CFXS ; the offshore currency fell 0.4% to 7.1760 per dollar CNH= .

The euro dropped 0.2% to $1.0961 EUR=EBS , as investors waited for the European Commission to release details of its financial rescue fund.

The German 10-year government bond yield fell after reaching a one-month high on Tuesday. It was last down 2 basis points at -0.442% DE10YT=RR .

Italy's 10-year government bond yield barely changed, last at 1.552% IT10YT=RR . Treasury yields rose, with ten-year yields US10YT=RR at 0.687%, up about 4 basis points from Tuesday.

Gold prices XAU= dropped to a two-week low, before paring some losses to trade down 0.1% to $1,79.00 per ounce. GOL/

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets

https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Larry King)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.