29 may
2020
12:43
Markets
Stock Indices Dropped: Investors Are Waiting for Press Conference on China

The scheduled press conference of President Trump is threatening to incite an even greater tension between the world's two largest economies. The stocks are falling while waiting for the outcome of the situation.

The worsening Chinese-American relations cast a gloom over the global growth of stocks caused by the economy opening. For the first time in five days, the Stoxx Europe 600 index dropped by 0.9% due to tourism sector and automotive stocks. Futures for the S&P 500 index are down by 0.4%. The contracts experienced a decline after President Trump made an announcement that his administration intended to make a decision on measures against China after the decision made by Beijing's officials to pass a law that could restrict freedoms in Hong Kong.

Global stocks showed zero reaction to the escalating tension in the relations between the official Washington and Beijing, but the scheduled press conference scared the investors away. 

Oil is becoming cheaper. Today, West Texas Intermediate was down by 1.9% to $33.06 per barrel. Brent oil became 1% cheaper at $34.94.

Gold gained 0.1% to $1,719.53 per ounce.

The US dollar is losing its positions again. The euro is up by 0.2% to $1.1104; pound sterling gained 0.2% and is now valued at $1.2236. The Japanese yen has strengthened by 0.5% to 107.14 per $1. The USD/RUB pair is now traded at ₽70.4088.

But for the Chinese situation, the mood at the market would be upbeat. It is related to the increasing incentives on behalf of the governments and the reduced localization measures after the coronavirus outbreak. In the meantime, the information on next steps to be taken by the Fed could be out as early as today.