The continuation of US-China tensions drives global stocks down
Stocks around the world edged lower, while safe-haven investments saw gains on May 29.Traders are waiting for the US retaliation in response to the situation in Hong Kong.
Chinese parliament approved new regional security laws. The decision will likely limit the autonomy of the city, as well as its independent financial hub status.
President Trump has already promised a “very strong” reaction and plans to hold a conference on the issue today. The anxiety over the rising tensions pressed the markets down.
Euro STOXX 50 futures lost 1%. FTSE dropped 0.7%. S&P 500 futures were off 0.2%.
MSCI’s Asia-Pacific index continued to go down, losing 0.1%. Nikkei edged lower as well, stepping away from the highest position in three months. Yen, being a safe-haven asset, saw slight gains.