Stock Market Futures: China Stocks Drift as Investors Await Trade Deal
On Thursday’s early trading, Hong Kong and mainland stocks sought for direction as global concerns returned. Concerns followed cautionary comments overnight from the U.S and the organization for Economic Cooperation and Development.
On the mainland, the Shanghai Composite Index eked out gains of 0.05% or 1.57 points, to 3,103.67. The CSI 300 slipped 0.18% or 6.94 points to 3,841.15.
“[China] A-shares are taking a breather. Trump is rushing to have a trade agreement with China, giving a bit of a sense that an agreement could be reached. But all these things have been discounted on the A-share level,” said Louis Tse Ming-Kwong, managing director of VC Asset Management.
The Hang Seng Index opened down 0.34%, or 98.38 points, to 28,939.22, while the Hang Seng China Enterprises Index was off 0.25%, or 29.52 points, to 11,562.51.
The U.S stocks fell to a three-week low on fresh data and comments from John Williams the U.S Federal Reserve’s president, with the S&P falling to a third day, by 0.65%.
John Williams said the U.S economy should slow “considerably” in 2019. In a speech in New York, he said the Reserve can afford to wait as “uncertainties continue to loom large” before raising interest rates again. Trump expects the US economic growth to slow to around 2% this year down from a 3% expansion in 2018.
The Organization for Economic Cooperation and Development (OECD), in its report, said the global economy is suffering more than expected from trade tensions and political uncertainty.
According to Bloomberg, Lou Jiwei – China’s former finance minister, said the world’s second-largest economy would not make significant concessions on a deal with the US.
Chinese three major mobile operators were performing poorly. China mobile hit its lowest point since Jan 22, at HK$81.00, China Telecom shed 1.19% to KH$4.14, and China Unicom fell 1.46% to HK$9.43.
The fall came despite a pledge on Thursday morning to improve internet speeds and cur service fees.
Stock Market Futures: Dow ends lower as investors eye details from trade talks, oil prices tumble.
On Wednesday, the Dow Jones Industrial Average (DJIA) fell as investors awaited new details on U.S-China trade talks. Oil prices also tumbled after a larger- than expected increase in domestic crude stocks.
DJIA fell 133 points or 0.52% to 25,673. The S&P 500 was down 0.65%, and the Nasdaq fell 0.93%. Leading the Dow lower were Pfizer, WBA, and Exxon Mobil.
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