LONDON, U.K. – The European stock market decline early on Thursday as the US President Donald Trump signs the legislation that backs the protesters in Hong Kong, sparking another clash with the Chinese government.
Euro shares traded a bit lower on Thursday as market players monitor that new tension between the US and China over the Hong Kong bill that aims to protect the human rights of the protesters in the embattled city.
The pan-European Stoxx 600 tracked a 0.2% decline during the opening bell on Thursday trading. The decline was mostly powered by the shedding of auto stocks, which fell by around 0.7%, followed by other majority sectors going down into the negative territory.
The major downside in the market came after a new tension went between the US and China following the two bills President Trump signed into laws that back Hong Kong protesters on Wednesday. The issue about the protesters in Hong Kong has been a sour spot between the US and China previously, and signing the bills just added to the tension.
The Ministry of Foreign Affairs in China has already slammed the move of Washington, accusing the US government of having sinister intentions.
Investors are still waiting on how this tension would further affect the market, especially with phase one of trade agreement reaching its final throes, based on reports the previous day.
In the Asian market, shares had wobbled as market players fretted over how the recent misunderstanding has the potential to derail the US-China trade relations. Most of the broadest indices in the Asia Pacific were down by about 0.1%, excluding Japan.
In the US, markets are closed for this trading session for the Thanksgiving holiday.
Back in Europe, market players are digesting the poll data before the crucial date for the election, which is set for December 12. A poll data released by YouGov showed a winning course for Prime Minister Boris Johnson, gaining about 68 seats, a solid majority for the Parliament.
In the data front, market players are also on the lookout for the economic sentiment numbers for the eurozone, which is expected to be released on Thursday morning with the German inflation numbers set for the afternoon session.
When it comes to the individual stocks, the Virgin Money tracked about 10% increased after giving a more optimistic outlook for 2020, despite the canceling in its dividends and the decline for its full-year profit in 2019. The shares for the Johnson Matthey has also dropped by around 3.8% following the cutting of their stocks by J.P. Morgan.