Asia, Europe Markets Slip As US-China Tensions Flame Up Again

Asia, Europe Markets Slip As US-China Tensions Flame Up Again

Major indices worldwide are trading in red as the U.S. is reportedly set to impose sanctions on about a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.

The Dow and the S&P 500 futures are down by 0.50% each on the last check Monday. Brent crude futures are trading lower by 1.24% at $48.64, and gold futures are down by 0.62% at 1,828.60. Ten-year Treasury yield is down by 2.8 basis points to 0.941%.

Asia: Japan’s Nikkei 225 fell by 0.76% after the nation’s Leading index rose to 93.8 in October, and the Coincident indicator grew 4.9% month-over-month. Japan has a busy economic calendar on Monday with wage, bank lending, current account, and GDP data scheduled for release.

China’s Shanghai Composite benchmark closed 0.81% lower as the Trump administration continues to build pressure on China. The country's trade balance surplus jumped to RMB 75.4 billion in November as exports grew 21.1% due to pent-up demand. Forex reserves data is due to release later today.

Hong Kong’s Hang Seng Index fell 1.21%, led by banks, on fears of U.S. sanctions extending to Hong Kong banks. Hong Kong’s USD forex reserves swelled up to $486 billion in November.

Australia’s S&P/ASX 200 closed higher by 0.62% after job advertisements grew 13.9% in MoM in November. Building approvals and housing price data is due to release later today.

India’s Nifty 50 index is trading higher by 0.45%, driven by gains in public-sector banks, and healthcare and FMCG stocks. South Korea’s KOSPI is up by 0.51%.

Europe: Euro Stoxx 50 is down by 0.92% at press time, as investors moved out of equities on rising U.S.-China tensions. Sentix Investor Confidence Index for November is due to release today.

London’s FTSE 100 index is near flat as Brexit deal uncertainty looms. Britain’s House Price index grew 1.2% MoM and 7.6% YoY in November. November Retail sales data is scheduled to release today.

Germany’s DAX is down by 0.76%, despite industrial production growing 3.2% MoM in October. France’s CAC 40 slipped 1.08% at publication time.

Spain’s IBEX 35 is trading lower by 0.91%, driven by banks and energy stocks.

Forex Trading: U.S. Dollar Index futures are trading higher by 0.54% to 91.185. The dollar has gained 0.29% against the Euro $1.2085, strengthened 1.52% against the Sterling Pound at $1.3233, and gained 0.15% against the Japanese Yen at ¥104.30.

For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España.

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