Global stocks took a beating on Thursday as a fresh row between Washington and Beijing over U.S. legislation on Hong Kong threatened to undermine their trade talks and delay a “phase one” deal that investors had initially hoped to be signed by now.
European shares were on course to extend their losses with pan-European Euro Stoxx 50 futures STXEc1 down 0.62%, German DAX futures FDXc1 falling 0.68% and Britain’s FTSE futures FFIc1 down 0.48%.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 1.2% to a three-week low, with Hong Kong’s Hang Seng .HSI tumbling 1.6% while Japan’s Nikkei .N225 dropped 0.4%. Chinese mainland shares dropped 0.3% .SSEC.
U.S. S&P500 futures ESc1 were down 0.15%, having dropped as much as 0.6% in Asian trade, a day after all three major indexes fell, with the S&P 500 .SPX losing 0.38%.