Global shares skid amid virus woes, China-US trade tensions

By: |
August 7, 2020 2:48 PM

Investors were also awaiting a US report on jobs later Friday for another gauge of the economic fallout from the coronavirus pandemic.

Global shares, china US trade tensions, US economy, US shares, white house, american economy, Shanghai Composite, donald trump, global marketUS shares have been rising as investors wait for Congress and the White House to reach a hoped-for deal on more aid for the American economy. (AP photo)

Global shares were mostly lower on Friday in lackluster trading, as trade tensions between the US and China overshadowed optimism about more fiscal stimulus for the ailing US economy.

Investors were also awaiting a US report on jobs later Friday for another gauge of the economic fallout from the coronavirus pandemic. US shares have been rising as investors wait for Congress and the White House to reach a hoped-for deal on more aid for the American economy.

France’s CAC slipped 0.2% in early trading to 4,873.55, while Germany’s DAX edged up nearly 0.2% to 12,611.50. Britain’s FTSE 100 inched down less than 0.1% to 6,025.79.

US shares were set to drift lower with Dow futures down 0.4% at 27,116. S&P 500 futures were also lower, down 0.4%, at 3,331.62. Asian benchmarks appeared to be still steeped in worries about the growing number of coronavirus cases in some areas, and the painful impact of lockdowns, especially in Southeast Asia.

”The hope is for a smooth recovery as lockdowns ease, but the fear is that global ‘second wave’ risks and rising US-China tensions may throw a spanner at … recovery in the works,” said Hayaki Narita at Mizuho Bank in Singapore.

Japan’s benchmark Nikkei 225 slipped 0.4% to finish at 22,329.94, while Australia’s S&P/ASX 200 sank 0.6% to 6,004.80. South Korea’s Kospi edged 0.4% higher to 2,351.67. Hong Kong’s Hang Seng slipped 1.6% to 24,531.62, while the Shanghai Composite lost 1.0% to 3,354.04.

Chinese technology shares were shaken by President Donald Trump’s decision to issue executive orders banning the popular messaging app WeChat and short video app TikTok from the U.S. Shares in Tencent Holdings, owner of WeChat, plunged 10% but ended the day 5% lower.

Benchmark US crude oil dropped 14 cents to $41.81 a barrel in electronic trading on the New York Mercantile Exchange. It slipped 24 cents to settle at $41.95 per barrel on Thursday. Brent crude, the international standard, fell 13 cents to $44.96 a barrel. The US dollar inched up to 105.61 Japanese yen from 105.53 yen. The euro fell to $1.1832 from $1.1877.

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