22.05.2020 | UK shares face triple digit loss as markets react to new China clamp down
Source - The Daily Express
Fears of an international trade war heightened on Monday morning, as Donald Trump vowed to respond to Beijing's plans to clamp down on Hong Kong following an uprising there. Concerns about an increase in the rate of new coronavirus infections in Hong Kong have also worried markets. The US also made it harder for Chinese firms to list shares on the stock exchange, which is impacting global markets. The FTSE-100 fell 112 points to 5,903.05, extending its recent poor showing.
James Hughes of Scope Markets said: “Washington has continually blamed China for the Coronavirus pandemic, and last week blocked any chip supplies from the US to Chinese tech giant Huawei as well as passed legislation to make it harder for any Chinese firms to list shares on exchanges in the US."
He added: "It was yet another sign that the US will continue to ramp up its overall offensive on China."
Beijing also said it would not be setting a GDP growth target for the first time in 30 years, due to the unprecedented economic decline caused by the coronavirus pandemic.
In the UK, Asia-focused Prudential fell 5.8 percent amid worries over the health of the world’s second-largest economy.
The miners, led by Anglo American also plunged 5.2 percent in response to the news from China.