Hong Kong Market falls on trade war woes

Hong Kong share market were lower in afternoon session on Thursday, 06 September 2018, as risk aversion selloff continued on tracking mostly negative cues from Wall Street overnight, concerns over the global trade tensions and emerging market woes. Around afternoon trade, the Hang Seng Index tumbled 175.35 points or 0.64% to 27,068.50. The Hang Seng China Enterprises Index fell 62.30 points or 0.59% to 10,583.40. The sub-index of the Hang Seng tracking the Commerce & Industry sector fell 0.9%, the financial sector was 0.9% lower, and properties sector fell 0.1%, while Utilities sector added 0.2%.

Trade-related concerns weighed on the market, with the U.S. and Canada set to restart high-stakes efforts to resolve differences as they work toward recasting the North American Free Trade Agreement. Bilateral trade discussions have been tense at times, with President Donald Trump threatening over the Labor Day weekend to move forward without Canada if terms can't be agreed upon. On Tuesday, Canadian Prime Minister Justin Trudeau reiterated the country's view that no Nafta is better than a bad Nafta deal for Canadians, and that's what we are going to stay with.

 

The ongoing trade war between the U.S. and China could also intensify this week, with President Donald Trump reportedly saying over the weekend that he is ready to impose tariffs on an additional $200 billion worth of Chinese imports as soon as the public comment period ends on Thursday.

OFFSHORE MARKET NEWS, US stock market closed softer on Wednesday, amid ongoing trade tensions between the U.S. and its key partners. The Dow Jones Industrial Average inched up 22.51 points or 0.1% to 25,974.99, while the Nasdaq tumbled 96.07 points or 1.2% to 7,995.17 and the S&P 500 fell 8.12 points or 0.3% to 2,888.60.

The major European stock markets ended down on Wednesday. The U.K.'s FTSE 100 Index slumped by 1%, while the German DAX Index and the French CAC 40 Index tumbled by 1.4% and 1.5%, respectively.

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