· Wall Street finishes down as U.S.-China tensions heighten trade deal worries
Wall Street ended lower on Thursday, a day after hitting two-month highs, on a fresh wave of China-U.S. tensions that raised doubts about the trade deal reached early this year between the world’s two largest economies.
The Dow Jones Industrial Average .DJI fell 0.41% to end at 24,474.12 points, while the S&P 500 .SPX lost 0.78% to 2,948.51. The Nasdaq Composite .IXIC dropped 0.97%, to 9,284.88.
President Donald Trump said the United States would react strongly if China imposes national security laws for Hong Kong in response to last year’s often violent pro-democracy protests.
Earlier, Secretary of State Mike Pompeo criticized Beijing’s handling of the coronavirus outbreak, while a Chinese official said the country will not flinch from any escalation in tensions.
· Facebook expects 50% of employees will work remotely by 2030
Facebook will ramp up its hiring of remote workers and allow certain existing employees to continue working remotely moving forward after coronavirus restrictions ease, CEO Mark Zuckerberg said. The company expects 50% of employees to work remotely within the next five to 10 years as a result of this decision, Zuckerberg said.
Moving forward, employees who meet specific criteria and are interested in permanently working remotely will be able to request that approval. Employees who move to permanent remote work and relocate may have their salaries adjusted based on their new locations, Zuckerberg said.
· European markets close lower as investors react to euro zone data; Lufthansa up 3%
European stocks closed lower on Thursday as euro zone PMI (purchasing managers’ index) data indicated another slowdown in activity for the region’s manufacturing and services industry in May.
Germany’s DAX index closed 1.4% lower provisionally, while France’s CAC 40 dropped 1.2% and Britain’s FTSE 100 declined 0.8%. Due to the Ascension Day public holiday, markets are closed in Switzerland, Austria, Norway, Sweden and Denmark.
IHS Markit euro zone PMI data Thursday morning showed that economic activity contracted less drastically in May, with many countries in the bloc taking steps to reopen their economies.
The composite PMI reading, covering both manufacturing and services, came in at 30.5 compared to April’s all-time low of 13.6. While considerably better than expectations, the figure remains well below the 50 mark, which separates contraction from expansion.
The U.K. also saw a slower pace of PMI contraction in May, with Thursday’s composite reading coming in at 28.9 versus April’s 13.8.
Investors are also following the latest coronavirus news. The World Health Organization said the number of newly-reported cases globally hit a daily record this week, despite authorities around the world attempting to ease lockdown measures put in place to curb the virus’ spread.
· Asia stocks little changed as U.S.-China tensions rise
Stocks in Asia were little changed in Friday morning trade as tensions between China and the U.S. rise.
In Japan, the Nikkei 225 dipped slightly in early trade while the Topix index was flat. Over in South Korea, the Kospi was also unchanged.
Shares in Australia also trade close to the flatline, with the S&P/ASX 200 little changed.
Overall, the MSCI Asia ex-Japan index traded slightly lower.
Investors will watch for developments from China’s National People’s Congress, with the first plenary session set to kick off at around 9:00 a.m .HK/SIN. That comes as tensions between Beijing and Washington have risen in recent days.
Reference: CNBC, Reuters
Thai
Eng