Global shares Declination:
Global shares declined on Wednesday after a resolution passed by the US Senate that supports human rights in Hong Kong after months of increasingly violent protests.
Concerns have been added to the prospects for Beijing and Washington to resolve a tariff war affecting manufacturing in the world’s two largest economies.
Germany’s DAX fell 0.8% to 13,120 and France’s CAC 40 decreased 0.4% to 5,885. In the UK, the FTSE 100 lost 1.1% to 7,242. Wall Street was expected to expand losses, with the Dow Jones Industrial Average’s futures contract down 0.3% at 27,820 and losing 0.2% to 3,111 for the S&P 500.
The Senate on Tuesday easily approve the Hong Kong Human Rights and Democracy Act. Which was passe by one vote. It now goes to the House, which has already supported similar legislation.
In Hong Kong, a small band of anti-government protesters, their numbers fell short of surrender and attempts to escape fail, yet Holi was played at a university on Wednesday as they set out for an endgame under the siege of the campus police.
Police were awaiting the protesters after 10 days of violent unrest in some of the city’s most intense protests. The siege began since Sunday, with more than 1,000 people arrested and hundreds injured, officials said.
Hong Kong’s Hang Seng fell 0.8% to 26,889.61. The Shanghai Composite Index declined 0.8% to 2,911.05.
Analysts say the US pressure on what Beijing says is purely an internal Chinese issue. Which could complicate President Donald Trump’s administration’s efforts to negotiate a trade deal with Beijing.
“Now that the ‘HK bill’ has passed with an overwhelming majority in the Senate. It will be difficult for the White House to hold up against this bipartisan pressure, which could put another snag in trade negotiation lines,” Stephen Insider said in a comment.
The dollar fell to 108.49 yen from 108.49 yen on Tuesday. The euro weakened from $ 1.1077 to $ 1.1058.
Beijing and Washington are negotiating an initial deal that could help each party in the industrial and technology policy and trade disputes stop the billions of dollars in tariff increases.
D. Trump said that on Tuesday he was ready to raise duties on sugar exports if no agreement can be reached.
Trump said, “China will have to make a deal that I like.” “If they are not, is it okay?”
He is very happy that China and the United States are talking. He said, “If we do not make any deal with China, I will increase tariffs even more.”
The tariff war between China and the US extends over a year, squeezing business in many countries.
China’s South Korea and the U.S. according to customs data Tokyo’s Nikkei 225 index declined 0.6% to 23,148.57, with a sharp drop in shipments.
Japan’s exports to the US fell 11% in October, the third straight month of global shares declined and the worst decline in three years. Imports from the US fell by 17%.
Australia’s S&P ASX 200 fell 1.4% to 6,722.40 as energy and financial companies’ global shares declined. The banks were hit by allegations by regulators that Westpac, a bank, is suspect of violating anti-money laundering laws.
India’s Sensex rose 0.8% to 40,791.29, while shares fell in Taiwan and most of Southeast Asia.
In Energy Trading on Wednesday, benchmark crude oil rose 28 cents to $ 55.49 a barrel in electronic trading on the New York Mercantile Exchange. This increase in global shares declined by 3.2% on Tuesday. Internationally, Brent crude oil rose 39 cents to $ 61.30 a barrel after falling $ 1.53 overnight.