Wall Street opens the last session of the week down, with the Dow Jones at -0.45% and the S&P 500 at -0.19%, with markets worried about the increase in tensions between China and the United States after Beijing has announced it will introduce a controversial new national security law in Hong Kong. US President Donald Trump has warned that the United States will react “very strongly” if China increases its control over Hong Kong. In recent days Trump accused China of engaging “in a massive disinformation campaign” to win Joe Biden’s presidential race, while the United States Senate passed a law that could prevent some Chinese companies from selling their own. actions on Wall Street. Meanwhile, immunologist Anthony Fauci, the head of the National Institute of Allergy and Infectious Diseases, said he was “cautiously optimistic” about the possible Covid-19 vaccine tested by the US biotech company Modern.
Stock exchanges in Europe show a slight increase after the publication of the minutes of the April meeting of the ECB, which states that the Governing Council is “fully prepared” to increase the size of the Pepp, the 750 billion euro securities purchase program . In Milan the Ftse Mib rebounded to + 1.47% driven by bank securities, in Frankfurt the Dax rose to + 0.38%, in Paris the Cac 40 marked + 0.45% while in London the Ftse100 remained in negative territory at -0.23%. The spread between BTP and Bund drops to 208 points.
Asian stock exchanges end the session in the negative. In Tokyo, the Nikkei 225 lost 0.80% after the Japanese central bank left short-term interest rates unchanged at -0.1%. The central bank also announced a new 30,000 billion yen ($ 280 billion) loan program to support small and medium-sized businesses. In Seoul the Kospi lost 1.41%, in Sydney the Asx 200 recorded a decrease of 0.96%, in Shanghai the Composite sold 1.89% after the Chinese Prime Minister Li Keqiang communicated during the ‘National People’s Assembly that China has not set an economic growth target for 2020 due to the uncertainties due to the coronavirus emergency while in Hong Kong the Hang Seng index falls by -5.78%.
The price of oil also slowed with WTI at 32 dollars a barrel (-4.3%) and Brent at 34 dollars a barrel (-4.7%).