NEW YORK European and US stocks took a beating
Tuesday on dimming hopes for a US-China trade accord and as talks between
Britain and Europe over Brexit teetered on the brink of collapse.
US markets were in the red the entire session after the Commerce
Department late Monday announced new restrictions on 28 Chinese entities over
human rights violations, drawing an angry rebuttal from Beijing.
Stocks took another drop during the afternoon after the US State
Department announced new visa restrictions Chinese government and Communist
Party officials alleged to have persecuted Muslims.
Besides the new US sanctions, there also were fresh reports citing unnamed
Trump administration officials saying the White House is mulling new measures
to curtail US investment in China.
It's not a good sign to see these type of measures being put in place
just before the trade negotiation resumes, said Tom Cahill of Ventura Wealth
The market is skeptical that anything good can come out of the
negotiations this week.
Major US indices slid more than one percent, with the S and P 500 skidding 1.6
percent to 2,893.06.
European bourses also tumbled along with the British pound as a no-deal
Brexit again seemed more likely following the latest clash between EU and
British leaders on the divorce agreement.
Brexit talks teetering
In an unusual move, Downing Street provided a readout of a meeting between
British Prime Minister Boris Johnson and German chancellor Angela Merkel in
which Merkel allegedly demanded a rewrite of Britain's approach to the long-
vexing Irish border problem that made a compromise essentially impossible.
The Downing Street official quoted Merkel as saying a deal now looked
overwhelmingly unlikely and added that the Brexit talks were close to
Merkel's office declined to comment on confidential discussions, but
European Council President Donald Tusk addressed Johnson caustically on
What's at stake is not winning some stupid blame game, Tusk said.
At stake is the future of Europe and the UK as well as the security and
interests of our people. You don't want a deal, you don't want an extension,
you don't want to revoke, quo vadis?
The impasse weighed on the pound, which was at $1.2213 and could fall
further, analysts warned.
This public antagonism is a sign that negotiations are not going well,
said Kathy Lien of BK Asset Management. Unless Johnson proceeds with a
request to delay Brexit, the next stop for GBP/USD could be 1.20.
Key figures around 2040 GMT
New York Dow: DOWN 1.2 percent at 26,164.04 (close)
New York S and P 500: DOWN 1.6 percent at 2,893.06 (close)
New York Nasdaq: DOWN 1.7 percent at 7,823.78 (close)
London FTSE 100: DOWN 0.8 percent at 7,143.15 (close)
Paris CAC 40: DOWN 1.2 percent at 5,456.62 (close)
Frankfurt DAX 30: DOWN 1.1 percent at 11,970.20 (close)
EURO STOXX 50: DOWN 1.1 percent at 3,432.76 (close)
Tokyo Nikkei 225: UP 1.0 percent at 21,587.78 (close)
Hong Kong Hang Seng: UP 0.3 percent at 25,893.40 (close)
Shanghai Composite: UP 0.3 percent at 2,913.67 (close)
Brent North Sea crude: DOWN 0.2 percent at $58.24 per barrel
West Texas Intermediate: DOWN 0.2 percent at $52.63 per barrel
Pound/dollar: DOWN at $1.2213 from $1.2293 at 2100 GMT
Euro/pound: UP at 89.69 pence from 89.25 pence
Euro/dollar: DOWN at $1.0955 from $1.0971
Dollar/yen: DOWN at 107.07 yen from 107.26 yen
Source: Bangladesh Sangbad Sangstha (BSS)