Comments by the Chinese foreign ministry
- Says that China opposes US actions, calls it ‘pure nonsense’
- Urges US to stop frivolous political manoeuvres
China continues to repeat the same message as it has been doing when it comes to Hong Kong and the US, so there’s nothing new in this.
All eyes will now be on US president Trump and his announcement later today. As such, we can expect the market to be more defensive amid the stirred tensions for the time being.
Japanese stocks recover to end the day closer to flat levels
The market is keeping more cautious but any hints of a major risk-off play remains at bay for now, with investors all still waiting on US president Trump’s announcement on China that is to come later in the trading day.
Despite the slightly lower finish, it was still a solid week for the Nikkei as it gained by a little over 7% in trading this week.
Elsewhere in the region, the Hang Seng is currently down by 0.6% while the Shanghai Composite is up by 0.1%; both also off the lows posted earlier in the session.
Looking to the currencies space, the dollar continues to trade lower as the euro breaks higher above 1.1100. USD/JPY is also being pressured closer towards 107.00 currently.
The UK Times has the report
- UK seeking an alliance of ten democracies
- to provide alternative suppliers of 5G equipment and other technologies
- To lessen reliance on China
Countries UK is approaching include the other G7 constituents plus Australia, South Korea and India.
(Times may be gated)
Group of 20 major economies offered a suspension of official bilateral debt payments to77 eligible countries
- 36 of the 77 have applied
The offer is to help countries combat the coronavirus pandemic and its economic impact.Saudi G20 secretariat said the debt relief initiative approved in April could provide immediate liquidity of $14 billion as more countries participated and that amount could increase significantly if additional creditors, including multilateral development banks and private-sector creditors, joined the initiative.
(info via Reuters )
It had been a one-way trade in US stocks from yesterday’s low but equities quickly changed course after President Trump said he will make an announcement about China in a press conference tomorrow.
Clearly the market is concerned that it’s some kind of escalation beyond some minor sanctions around Hong Kong. I’m not so sure that’s realistic but you always have to expect the unexpected with Trump. Watch out for leaks ahead of his announcement.
- S&P 500 -6 points to 3029 or -0.2%
- DJIA -0.6%
- Nasdaq -0.5%