· Wall Street ends down in late selloff; Facebook and China weigh
Wall Street ended lower on Thursday following a late-session reversal, with Facebook weighing on the market after President Donald Trump said he would sign an executive order related to social media companies and would hold a news conference on China on Friday.
Worsening ties in recent weeks between the United States and China, the world’s two largest economies, could pose a threat to the stock market’s strong recovery from its steep selloff.
The Dow Jones Industrial Average .DJI fell 147.63 points, or 0.58%, to 25,400.64, the S&P 500 .SPX lost 6.4 points, or 0.21%, to 3,029.73 and the Nasdaq Composite .IXIC dropped 43.37 points, or 0.46%, to 9,368.99.
Concerns about China-U.S. relations may also have driven the late decline. White House economic adviser Larry Kudlow told CNBC on Thursday that Hong Kong may now be needed to be treated like China when it comes to trade and other matters, echoing remarks by Secretary of State Mike Pompeo on Wednesday.
· European stocks close higher as EU stimulus plan and U.S. jobs data outweigh China tensions
European stocks rallied on Thursday as a massive EU stimulus plan and fresh U.S. unemployment data offset concerns over rising U.S.-China tensions.
The pan-European Stoxx 600 closed up by 1.8% provisionally, with most sectors and bourses in the black. Chemicals was the best-performing sector, jumping 2.6%.
Investors are keeping an eye on developments in an escalating war of words between the U.S. and China, with trade, the coronavirus pandemic and now Hong Kong a focus in the dispute.
· Asia Pacific stocks dip as investors watch market reaction to China’s security bill for Hong Kong
Stocks in Asia Pacific edged lower in Friday morning trade as investors await a news conference from U.S. President Donald Trump regarding China that comes as tensions between Washington and Beijing have risen in recent days.
In Japan, the Nikkei 225 declined 0.56% in early trade as shares of robot maker Fanuc fell 2.13%. The Topix index also shed 0.56%.
South Korea’s Kospi shed 0.55% as shares of chipmaker SK Hynix fell more than 2%. Australia’s S&P/ASX 200 declined 0.84%.
Overall, the MSCI Asia ex-Japan index traded 0.32% lower.
Investor focus on Friday will likely be on market reaction after China’s National People’s Congress on Thursday approved a national security bill for Hong Kong. That called into focus the embattled city’s autonomy from China, Hong Kong has a “one, party two systems” principle that allows for it to have additional freedoms not available to mainland Chinese residents.
U.S. President Donald Trump said he would hold a press conference on U.S.-China relations, expected sometime on Friday stateside.
Reference: CNBC, Reuters
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