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European stocks fall amid Chinese technology crackdown

European stocks are expected to fall sharply on Monday after China orders Tencent to terminate exclusive music licensing agreements with record labels around the world.

Beijing’s announcement of a new rule banning commercial tutoring in core school subjects to ease financial pressure on families was also emotional.

Policy changes also limit foreign investment in the sector through mergers and acquisitions, franchises, or variable interest entity (VIE) arrangements.

Tensions between the United States and China have been in the spotlight of investors, even after China has blamed US policy for the tense start of high-level talks in Tianjin.

Asian market Benchmark indexes in China and Hong Kong fell 2-3% as stocks in Chinese private education companies succumbed to strong selling pressure.

Japan’s Nikkei Stock Average countered the weak trend of rising more than 1% as traders returned to their desks after two days off.

The dollar index has eased slightly and yields on 10-year Treasuries have fallen as investors have expected the Federal Open Market Committee (FOMC) to meet this week for clues as to when the stimulus will taper off.

The Chinese yuan has been low against the dollar for nearly a week as investors await the outcome of a major political conference in Beijing later this week.

Oil prices have fallen in Asian trade as an increase in COVID-19 cases in parts of Asia and floods in China have raised concerns about a recovery in fuel demand. Bitcoin has recently jumped to $ 40,000 to expand its profits.

Corporate confidence data from Germany is scheduled for the second half of the day, marking a bright day for European economic news.

Major US economic data released this week across the Atlantic includes reports on home sales, consumer durables orders, consumer confidence, second-quarter GDP, and personal income and spending.

In terms of revenue, Tesla, General Electric, Alphabet, Apple, Microsoft, Boeing, McDonald’s, Pfizer, Amazon and ExxonMobil are among the many companies reporting quarterly results.

US stocks closed at record highs on Friday after tech giants Snap and Twitter made more than expected earnings. The Dow rose 0.7%, while the heavy Nasdaq Composite and the S & P 500 both rose about 1%.

European stocks rose on Friday as investors responded to bright earnings updates and encouraged dovish comments from economic data and the European Central Bank.

The Pan-European STOXX 600 surged 1.1%. Germany’s DAX rose about 1%, France’s CAC 40 index rose 1.4%, and the UK’s FTSE 100 rose 0.9%.

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European stocks fall amid Chinese technology crackdown

Source link European stocks fall amid Chinese technology crackdown

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