Hong Kong stocks hit three-month lows due to China-EU trade tensions.

From South China Morning Post: 2024-07-07 22:37:08

Hong Kong stocks hit three-month lows amidst escalated trade tensions. The Hang Seng Index dropped 1.2%, nearing its lowest close since April. China’s anti-dumping hearing on brandy imports from the EU next week adds to the strain. Major decliners include Orient Overseas International, Mengniu, and Longfor Group.

Investors brush off US interest rate cut prospects amid weak labour market data. Unemployment near 3-year highs raise chances of a 25 bps rate cut in September to 71%. Eyes now turn to China’s Communist Party third plenum for potential market catalysts, with the meeting to set long-term economic policies.

Other Asian markets mirror Hong Kong’s sentiments. Japan’s Nikkei 225 slipped 0.1%, Australia’s S&P/ASX 200 lost 0.4%, and South Korea’s Kospi remained flat. China’s actions impacting EU ties and upcoming party session dominate discussions in the region.



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