Stimulus hopes, US-China spat a reason to pause

Hong Kong: Global financial markets paused as investors monitored the US-China tensions, following the proposed US travel bans on Chinese Communist Party members and China retaliating by calling it a “pathetic” plan.

In the latest slavo, China’s foreign ministry said on Friday that US officials had “lost their minds and gone mad” over their dealings with Beijing. Spokeswoman Hua Chunying said American officials were criticising China to distract from domestic political problems.

Meanwhile, progress is also being tracked as European leaders discuss a 750-billion euro post-pandemic recovery fund.

“Differences remain between some nations regarding the EU recovery fund; a fund which is planned to help those EU countries most affected by the coronavirus pandemic,” said Fiona Cincotta, a Market Analyst at data provider City Index, referring to the southern European countries needing the funds and Sweden, Denmark, Austria, and the Netherlands who want the fund to be smaller and more focused on loans rather than grants.

“Expectations are low that an agreement will be reached over the coming two days of the summit. However, the reality of failure to agree could still add downward pressure on the Euro and on sentiment for European stocks.”

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