China Markets Extend Losses

Daniel Fowler
July 26, 2020

Gold for delivery in August lost $1.20 to $1,888.80 per ounce.

The benchmark Shanghai Composite Index plunged 3.86 percent to 3,196.77 points, and the blue-chip CSI300 index tumbled 4.39 percent to 4,505.59 points.

The Dow Jones Industrial Average opened at 26,533.41 points, down 118.92 points, or 0.45 percent. The Hang Seng China Enterprises index fell 2.37% to 10,080.86.

Each of the indexes had been down more sharply in the morning, with the Nasdaq off by as much as 2.3%.

Tech stocks in Asia were among the biggest losers on Friday.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.8%, while Japan's Nikkei index closed down 0.58%.

The coronavirus pandemic remains the most dominant force in markets, with its potential to destroy lives and economies.

Global equities took a beating on Friday on intensifying China-US tensions while a worse-than-forecast US jobs report and stalled stimulus talks in Washington fuelled fears about the economic recovery, despite a batch of bright data in Europe.

But Shanghai fell 0.2 per cent, though well off its earlier lows of more than one per cent, while Seoul, Taipei, Wellington and Manila were also down.

The S&P 500 is within 3.3% of the all-time high it set in February.

Bill Gates: No hand in COVID-19 outbreak
This contribution was announced as part of the WHO's request for $675 million in contributions to fight the spread of the virus. Maybe the vaccines that will be made later will surprise us positively. "So this is not a quick nor swift process", she said.

"The Fed is the big story behind this market, that and the liquidity it's provided", said Teresa Jacobsen, managing director at UBS Private Wealth Management.

Washington and Beijing added to the long list of issues they have butted heads over when the United States ordered the closure of the Chinese consulate in Houston within 72 hours.

In early trade, London, Paris and Frankfurt rose.

Shares were mixed in Asia on Thursday, as flaring tensions between the USA and China added to uncertainties overhanging regional markets.

"While the inevitability of deteriorating US-China relations as a structural feature of our geopolitical landscape was never in doubt, the shifts appear to be hastened", Narita said.

A speech by U.S. Secretary of State Mike Pompeo's saying that "securing our freedom from the Chinese Communist Party is the mission of our time" adds to the rhetoric certain to incense Beijing, making it still more hard for either side to back down, he said.

Strength in technology and health care stocks outweighed losses in energy companies, banks and elsewhere in the market. Other high-flying tech-oriented giants also stumbled, including a 3.7 per cent drop for Amazon. The NIFTY 50 slipped 0.2 percent for the day, but rose 2.7 percent. Microsoft slid 0.6%. Intel sank 16.2% after it delayed the release of its new 7 nanometer chip.

The yield on the 10-year Treasury was steady at 0.58%, down from 0.59% late Wednesday. It tends to move with investors' expectations for the economy and inflation. It rose $24.90 to settle at $1,890.00 per ounce.

Analysts said investors also are wary over the unclear prognosis for further stimulus for the USA economy, just as the end of a previous package of extra support for those made jobless by the pandemic looms.

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