LONDON, U.K. – With the recent shake-up after the US President Donald Trump signed the Hong Kong bill in aid to the protesters in the embattled city, which started the tension with China, Euro stocks dropped significantly with the FTSE 100 flopping considerably early on Thursday.
At around 8:35 am, the FTSE 100has continued with a downward trend on Thursday, tracking a loss of about 36 points, going down towards 7,393.85 early on.
The previous optimism that powered up the stock market early this week has been waning, and on Thursday, the previous trade optimism that led to significant gains was completely changed into pessimism after the Hong Kong bill was finalized when President Trump signed it on Wednesday.
An analyst from the CMC Market, Jasper Lawler, was optimistic despite the move by the White House that could potentially negatively affect the market. According to him, most market players think that the signing of the bill was mostly symbolic and wouldn’t cause any chaos to the initial phase of the US-China trade negotiations.
He further explained that the Hong Kong bill would only become a downside that could take possible profits in the market if the Chinese government over-reacts in their response. But, there is a very low chance that will happen, according to Lawler.
On the other hand, the sterling edged a bit higher following the only poll that proves to correctly predict the current sitting parliament gave recent poll numbers showing the Conservatives have a clear lead for the December 12 election.
Given that the poll will prove correct on the upcoming election, Boris Johnson would be able to sit on power, allowing him to push through the Brexit deal.
Back on Euro stocks, the Johnson Matthey leads the fallers list on Thursday, tracking about eight points decline from the blue-chip index, followed by Vodafone, which started trading without any claim to a dividend.
On the other hand, ImmuPharma, a small-cap drug developer, was safe from the downturn in Euro stocks. Powering the gains in shares in Europe, ImmuPharma tracked a double of its previous closing value for Thursday following the announcement it made on a new licensing deal with a specialty drug firm in the US. The licensing deal is between ImmuPharma and Avion Pharmaceuticals and is worth about $100 million, with Avion funding the $25 million for the costs of the reformatted 3rd phase of the clinical trial set for next year.
The recent partnership aims to develop and build a flagship treatment for patients with lupus.