European stocks fall after Hong Kong technology stocks sell off again

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Stock update

European stock markets fell on Thursday, after a new round of volatility in the Hong Kong stock market, and the U.S. central bank will hold an important central bank summit.

The Stoxx 600 Index and the UK FTSE 100 Index fell 0.4% across the region, the French Cac 40 Index fell 0.5%, and the German Dax Index fell 0.7%. Retailers, tourism and leisure and basic materials groups lag behind.

Asian markets are under greater pressure, and Hong Kong’s Hang Seng Index fell 1.1%. The Hong Kong-listed Chinese group’s short video platform Kuaishou slumped 9.2% after lower-than-expected profits in the second quarter.

So far this year, the Hang Seng Index has fallen by 6.7%, and its technology sub-index has fallen by nearly 25%. The markets in Hong Kong and mainland China have recently caused successive rounds of turbulence due to Beijing’s suppression of the private sector.

Commodities also fell. The global oil benchmark Brent crude fell 0.6% to US$71.81 per barrel, while the US marker West Texas Intermediate crude fell 0.8% to US$67.82 per barrel. Gold fell 0.2% to US$1,786 per troy ounce.

At the same time, South Korea became the first major economy in Asia Raise interest rates Since the beginning of the epidemic.This move precedes the virtual Central Bank Governors Meeting Sponsored by the Federal Reserve Bank of Kansas City. Federal Reserve Chairman Jay Powell will deliver a speech on Friday, the headlines of the summit.

As the economy and labor market have significantly recovered from the impact of the coronavirus, investors will look for clues as to when the Fed will begin to withdraw its crisis-period stimulus measures.

“In fact, our monetary policy settings are at an emergency level,” said Steven Bell, chief economist of BMO Global Asset Management. “The fire is almost extinguished, and it is inappropriate to continue to loosen monetary policy.”

Bell said that indicators such as signs of rising wage inflation will be important indicators for deciding when to start reducing the Fed’s $120 billion monthly asset purchase plan.

In the United States, S&P 500 futures rose 0.2%, while futures tracking the technology-focused Nasdaq 100 index were flat.

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