Global Stocks Slip on Doubts About China-U.S. Tariff Talks
By Anna Isaac
Global stocks moved lower Wednesday after stumbling blocks
emerged in trade talks between the U.S. and China.
Major indexes across Asia fell, and ongoing political unrest in
Hong Kong drove the Hang Seng lower by 1.8%. Japan's Nikkei 225 was
down 0.9%. In Europe, the Stoxx Europe 600 dropped 0.6%, while
other regional indexes also slipped. The FTSE 100 fell 0.5%, while
Germany's DAX dropped 0.8%. U.S. futures slipped, with contracts
tied to the Dow Jones Industrial Average down 0.3%.
A question hanging over trade talks is whether Washington will
agree to remove existing tariffs on Chinese imports to secure an
initial deal with Beijing, rather than just lifting the threat of
further levies due December 15.
Stocks fell in Hong Kong as unrest gripped the city, including
the parts of the financial district, for a third straight
"The escalation of violence has caused some market jitters,"
said Daryl Liew, head of portfolio management at REYL
The Hang Seng's fall Wednesday put its losses this week to 3.9%.
Insurer AIA Group Ltd. led declines on the flagship index with a
3.2% fall. Selling financial products to mainland visitors in Hong
Kong is an important line of business for AIA. Elsewhere,
real-estate firm Sun Hung Kai Properties Ltd. shed 2.4%.
Mr. Liew said global shares were richly valued and uncertainties
over global growth and the trade talks could dent investors' risk
In Europe, banks were the worst performing sector in the Stoxx
Europe 600, down 2%. The drop was led by Spanish banks, after the
leading socialist party, Podemos, moved toward forming a new
Podemos has pledged to raise taxes on banks and block
privatizing Bankia SA's, one of the country's largest lenders. Its
shares fell 4%. Banco Santander SA dropped 2.4%.
Markets will get an update on price growth in the U.S. on
Wednesday when the October consumer-price index is released by the
Labor Department. Later, Federal Reserve Chairman Jerome Powell
gives testimony to Congress's Joint Economic Committee. Lines of
questioning for Mr. Powell might include the Fed's expected pause
on interest-rate cuts and the overall health of the U.S.
Separately, policy makers Neel Kashkari of the Minneapolis Fed
and Thomas Barkin of the Richmond Fed are also set to deliver
Technology giant, Cisco Systems Inc., will report earnings later
The yield on the U.S. 10-year Treasury fell to 1.900% from
Write to Anna Isaac at email@example.com
(END) Dow Jones Newswires
November 13, 2019 05:06 ET (10:06 GMT)
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