European shares retreat as Hong Kong bill spurs trade tensions again
Reuters
Published Nov 28, 2019 08:53
European shares retreat as Hong Kong bill spurs trade tensions again
(Reuters) - European shares pulled back from near-record highs on Thursday, as U.S. President Donald Trump signed into law a bill backing protesters in Hong Kong, sparking doubts about the resolution to a prolonged tariff war between Washington and Beijing.
The law, which warns of sanctions against human rights violations in Asia's financial hub amid pro-democracy protests, drew a sharp rebuke from China for what it views as U.S. interference in an internal matter.
The diplomatic standoff threatens to derail negotiations on a trade truce between the world's top two economies. Investors had turned optimistic that at least a partial trade deal would be signed by the end of the year.
Shares of trade-sensitive auto parts makers (SXAP) and tech firms (SX8P) led declines on the pan-European STOXX 600 index. The benchmark index (STOXX) was down 0.3% by 0806 GMT.
In a bright spot, Virgin Money (LON:VM) UK Plc (L:VMUK) jumped 7.3% to the top of the STOXX 600 as traders reacted positively to provisions for the PPI mis-selling scandal which were within its previous expectations.
Focus now shifts to a raft of economic indicators, including euro zone consumer confidence data and preliminary November inflation figures from Germany, due later in the day.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.