AIRLINK 62.48 Increased By ▲ 2.05 (3.39%)
BOP 5.36 Increased By ▲ 0.01 (0.19%)
CNERGY 4.58 Decreased By ▼ -0.02 (-0.43%)
DFML 15.50 Increased By ▲ 0.66 (4.45%)
DGKC 66.40 Increased By ▲ 1.60 (2.47%)
FCCL 17.59 Increased By ▲ 0.73 (4.33%)
FFBL 27.70 Increased By ▲ 2.95 (11.92%)
FFL 9.27 Increased By ▲ 0.21 (2.32%)
GGL 10.06 Increased By ▲ 0.10 (1%)
HBL 105.70 Increased By ▲ 1.49 (1.43%)
HUBC 122.30 Increased By ▲ 4.78 (4.07%)
HUMNL 6.60 Increased By ▲ 0.06 (0.92%)
KEL 4.50 Decreased By ▼ -0.05 (-1.1%)
KOSM 4.48 Decreased By ▼ -0.09 (-1.97%)
MLCF 36.20 Increased By ▲ 0.79 (2.23%)
OGDC 122.92 Increased By ▲ 0.53 (0.43%)
PAEL 23.00 Increased By ▲ 1.09 (4.97%)
PIAA 29.34 Increased By ▲ 2.05 (7.51%)
PIBTL 5.80 Decreased By ▼ -0.14 (-2.36%)
PPL 107.50 Increased By ▲ 0.13 (0.12%)
PRL 27.25 Increased By ▲ 0.74 (2.79%)
PTC 18.07 Increased By ▲ 1.97 (12.24%)
SEARL 53.00 Decreased By ▼ -0.63 (-1.17%)
SNGP 63.21 Increased By ▲ 2.01 (3.28%)
SSGC 10.80 Increased By ▲ 0.05 (0.47%)
TELE 9.20 Increased By ▲ 0.71 (8.36%)
TPLP 11.44 Increased By ▲ 0.86 (8.13%)
TRG 70.86 Increased By ▲ 0.95 (1.36%)
UNITY 23.62 Increased By ▲ 0.11 (0.47%)
WTL 1.28 No Change ▼ 0.00 (0%)
BR100 6,944 Increased By 65.8 (0.96%)
BR30 22,827 Increased By 258.6 (1.15%)
KSE100 67,142 Increased By 594.3 (0.89%)
KSE30 22,090 Increased By 175.1 (0.8%)
Markets

European shares retreat as US law on Hong Kong sparks trade jitters

The tech sector, which includes chipmakers with a large exposure to China, was down 0.6pc. Focus now turns to
Published November 28, 2019
  • The tech sector, which includes chipmakers with a large exposure to China, was down 0.6pc.
  • Focus now turns to euro zone consumer confidence data and preliminary November inflation figures from Germany.
  • Shares of trade-sensitive auto parts makers shed 0.8pc in their sharpest one-day drop in more than a week.

European shares pulled back from near-record highs on Thursday, as US President Donald Trump signed into law a bill backing protesters in Hong Kong, sparking doubts about a resolution to the prolonged tariff war between Washington and Beijing.

The law, which warns of sanctions against human rights violations in Hong Kong amid pro-democracy protests, drew a sharp rebuke from China for what it views as US interference in an internal matter.

The pan-European STOXX 600 index was down 0.2pc after closing Wednesday just points away from a record high, as the latest standoff threatens to derail trade negotiations between the world's top two economies.

Shares of trade-sensitive auto parts makers shed 0.8pc in their sharpest one-day drop in more than a week.

The tech sector, which includes chipmakers with a large exposure to China, was down 0.6pc.

"I wouldn't go as far as to say that we're back at square one, but this clearly underlines the more structural tensions between the United States and China," said Teeuwe Mevissen, senior market economist at Rabobank.

"But the interests for both China and the US to not escalate the situation and pause this conflict are still very much alive."

European shares tracked global stocks higher this week as investors were hopeful that at least a partial trade deal would be signed by the end of the year.

The next important date in the dispute is Dec. 15, when US tariffs kick in on Chinese imports including electronics and Christmas decorations.

Investors are also closely watching economic indicators as Europe's powerhouse - Germany - teeters on the edge of recession. Data this week showed German business morale rose in November, but the manufacturing sector is still declining.

Focus now turns to euro zone consumer confidence data and preliminary November inflation figures from Germany, with trading volumes expected to be light in view of the US Thanksgiving holiday.

Among country indexes, the export-laden London's FTSE 100 and Germany's DAX led declines. The blue-chip FTSE 100 was also pressured by a handful of stocks trading ex-dividend, including Vodafone, and a firmer pound.

Virgin Money UK Plc jumped 21.4pc to the top of the STOXX 600 as traders reacted positively to provisions for the payment protection insurance mis-selling scandal, which were within its previous expectations.

The stock is on track for its best day since going public in 2016.

Comments

Comments are closed.