China E-Commerce Law Update — The a2 Milk Company
A new law governing e-commerce has been enacted in China, with the implications looking to assist The a2 Milk company.
Morning News Summary
A New Round of Tariffs Sinks in
Global markets’ momentum faded on Monday as US tariffs on $200bn in Chinese goods officially kicked in, and China reportedly cancelled trade talks that had been planned for the coming days. US indices suffered modest losses. Europe and the UK also lost ground due to rallying currencies. Hong Kong and Indian benchmarks dropped while most other major Asian markets remained closed for holidays.
US stocks started the week in the light red as investor risk aversion rises
US indices started off the week in the red as the latest round of tariffs on US and Chinese goods took effect. The Dow Jones Industrial Average and the S&P 500 declined -0.6% and -0.4% respectively, while the Nasdaq Composite Index was only slightly lower as some tech stocks rose. Energy stocks gained after OPEC and Russia ended a weekend meeting without agreeing to increase oil supply.
Comcast sank -6.9% after topping 21st Century Fox (+1.4%) in a three-round auction for Sky Plc (+8.8%), winning the broadcaster with a US$38.8bn bid. Walt Disney, which is buying most of Fox, rose +2.1%. General Electric plunged -4.2% to a new 9-year low as concerns emerged about a recent gas turbine failure in Texas. Delphi Technologies dropped -3.8%. Healthcare stocks McKesson Corp (-2.0%), Allergan (-1.7%), and Johnson & Johnson (-1.5%) all progressed lower. L Brands fell -1.8%. Colgate Palmolive declined -1.7%. Wells Fargo inched down -1.2%. On the other side, Alexion Pharmaceuticals rallied +4.9% after recording strong phase 3 results for a drug to treat optic nerve inflammation.
Europe and the UK pulled lower by trade tensions and rallying currencies
European and UK equities gave back the previous sessions’ gains, as trade tensions dampened sentiment, while the euro and pound rallied. The Stoxx Europe 600 shed -0.6%. Automakers BMW and Daimler declined -2.7% and -2.6% respectively as trade tensions persisted. Adidas declined by -1.2%. L’Oréal slid -1.2%.
The UK’s FTSE 100 lost -0.4%. Sky Plc surged +8.6% after Comcast (-6.9%) said it would pay £17.28 a share for the UK’s biggest pay-TV group. Reckitt Benckiser decreased -1.7%. Unilever, Standard Chartered, Shire and Weir each fell by -1.6%.
Hong Kong dropped while other major markets stayed closed
Hong Kong’s Hang Seng Index fell -1.6%, Bombay’s Sensex dropped -1.5% and the Singapore Straits Times Index managed a +0.1% gain on Monday. Japan, Mainland China, Korea and Taiwan were closed for the autumn equinox holidays on Monday. Mainland China exchanges will reopen today but Hong Kong will close for the day and Korea will remain closed today and tomorrow.
ASX 200 ends narrowly lower
The ASX 200 slid down -0.1% into the light red as the closure of Asian indices subdued investor interest.
Crude and gold progress upwards, iron ore remains flat
WTI crude gained +2.6% to US$73.70, while gold inched up +0.1% to US$1,199.71. Meanwhile, iron ore remained unchanged at US$69.50/MT.
- Stats NZ: International visitor arrivals - August 2018
- Snakk Media Limited (SNK), Smartpay Holdings Ltd (SPY) AGM