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Trading suffers as Brexit weighs on sterling From Reuters




© Reuters. The offices of the London Stock Exchange Group are located in the City of London, United Kingdom.

By Marc Jones

LONDON (Reuters) – World stocks have made it four days into the red on Thursday over the last five days as concerns grew that China -UNS The trade conflict quickly became a technological one Cold war between the two largest economies in the world.

Asian equities fell to a four-month low as rhetoric between Beijing and Washington remained fierce, while European stock markets also fell as well as Germany and the eurozone, amid worries over Brexit and gloomy data strengthened the nerves.

USA Stock futures also showed a weak start with a 0.5% decline.

Investors fear that the US-China trade dispute, which has already weighed on global growth and corporate investment, could see another sharp escalation without signs of resolution

Late Wednesday, Reuters reported that the US Government consider Huawei-like sanctions against Chinese video surveillance company Hikvision for treating its Uighur Muslim minority.

After informing the US states, Huawei Technologies bet on a trade blacklist last week, British chip designer ARM has cut Huawei's dealings with the blockade.

The US military dug in the knife and said it had sent two naval vessels across the Taiwan Strait Wednesday.

"It is tin hats on and bundling the hatches for a bit of volatility for the next few months," said Tony Cousins, chief executive of Pyrford International, the global arm of BMO Global Asset Management.

"We are as defensive as we could be," he said, adding that it was impossible to predict what steps US President Donald Trump would likely take in the trade war with China next.

More and more investors Nomura analysts warned in a note, "Without a clear path forward during a worsening US presidential election in 2020, we see an increasing risk that tariffs will remain in force by the end of 2020."

As In response, Shanghai blue chips fell 1

.7%, close to their lowest level since February. An index of major telecoms companies dropped 3.7% as Huawei's suppliers suffered. MSCI's broadest index for Asia-Pacific equities outside Japan reached its lowest level in four months.

Finance Minister Steven Mnuchin said Wednesday it would take at least a month for the United States to approve the proposed $ 300 billion in Chinese import tariffs.

The Indian market contradicted the global picture The party of Prime Minister Narendra Modi scored a historic victory in the country's parliamentary elections. Official data show that Modis Bharatiya Janata Party (BJP) is in the lead in 292 of the 542 available seats.

At least 272 seats are required for a majority in the lower house of parliament.

FINAL BREXIT

In currencies, the yen was again in demand as a safe haven as the dollar fell to 110.16 yen and moved away from the week high of 110.67 to $ 1.1130, reaching a monthly high in a basket of currencies from 98,235.

The minutes of the last Fed meeting on Wednesday underscored the willingness to be patient with politics for some time to come, given the uncertain global outlook. [19659004] The likelihood of a rate cut seemed to diminish as many Fed decision-makers considered recent inflation weakness to be "temporary," even though the recent escalation in the trade war means that markets are still poised for possible easing.

Sterling struggles British Prime Minister Theresa May came under heavy pressure following her recent Brexit move as she reached a 4-1 / 2-month low of $ 1.2603 and recorded her ninth drop in the last 10 days to end

The prominent Brexit supporter Andrea Leadsom resigned from the government on Wednesday and could announce her departure date on Friday, according to British media coverage.

"Uncertainty is the only clear short-term certainty," said Tim Riddell, macro strategist at Westpac.

"The risk of a hard Brexit substitute for May has increased the risk of a hard Brexit result or even a forced no-deal exit," he added. "Such an event would likely lower the GBP, increase the risk of a decline in assets, and take countermeasures from the BOE (Bank of England) to shore up the assets."

The commodity markets were slightly higher at $ 1,274.73 per ounce.

Oil Prices increased overnight losses after an unexpected increase in inventories exacerbated investor concerns about demand.

US. Crude oil recently dropped 48 cents to $ 60.94 a barrel, while futures lost 57 cents to $ 70.41.


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