european markets were weak on Friday by the worsening of us-china tensions related to the political situation in Hong Kong.read also : François d Orcival: "When China shakes the world"
Paris (-0,02%), Frankfurt (+0,07%) and Madrid (+0.17 per cent) have ended without direction. London fell 0.37%. Has the Milan stock Exchange, the optimism has resist (+1,34%). At the time of the closing of the european, Wall Street was preparing for a weekend of three days in the United States. "The risk has moved from the Covid-19 to the deterioration of sino-american relations with a very controversial law on the security announced by Beijing," explains Stephen Innes, a strategist at AxiCorp.
China has decided to impose in Hong Kong, a law on "national security" to prohibit "treason, secession, sedition and subversion". "Beijing tightens its grip on Hong Kong," which could react to the american president Donald Trump and "to renew trade tensions between the United States and China, which explains the anxiety of the investors," said David Madden, an analyst at CMC Markets. The head of the american diplomacy Mike Pompeo has called "fast" to Beijing to "reconsider its proposal to be disastrous".crackdown on opponents
While China presents this bill as being essential to the stability of this international financial centre, the Hong Kong stock Exchange closed Friday down more than 5%. This proposal of law aims to suppress the opponents of the central government, in the wake of huge protests by pro-democracy that have shaken the territory's semi-autonomous last year.
These concerns are in addition to the still ever present of a new surge in infections as and as economies déconfinent. Financial stocks exposed to the asian market fell back to the image of banks HSBC (-4,99% to 379,00 pence) and Standard Chartered (-2,43% to 382,00 pence), as well as insurer Prudential (-9,29% to 1.011,00 pence).
Renault has increased its losses (-2,86% for 17,20 euro), the Economy minister Bruno Le Maire has said that the band was playing "survival" and had to undertake the maintenance in France of certain activities. Lufthansa is deactivated (-1,16% with 8,04€) while the agreement between the group and the State on a bailout of 9 billion euros is delayed at least until early next week, according to several media outlets.
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