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NEW YORK (dpa-AFX) – The escalating dispute between the United States and China over Hong Kong has caused investors to hold back on the last trading day of the week. The Dow Jones Industrial (Dow Jones 30 Industrial) lost 0.97 percent to 25,156 points on Friday. The previous day, the US leading index had initially risen to the highest level since the beginning of March, but fell in late trading due to the conflict over Hong Kong.
In the midst of increasing tensions, the stock marketers are turning their attention to the US President Donald Trump and his eagerly awaited statement on how to proceed. “We will make certain decisions and discuss them tomorrow,” he had announced the previous day, but without giving details. “We are not happy with China,” Trump complained.
The market-wide S&P 500 declined by 0.62 percent to 3,011 meters. The technology-heavy NASDAQ 100, however, increased by 0.18 percent to 9434 points.
When the Bloomberg news agency, citing informed people, reported that Trump was considering sanctions against the Hong Kong financial sector, the Dow Jones Industrial initially fell to its lowest level of the day. Then he made up for these losses.
Goldman Sachs analyst Vishal Vivek said in a study that US stock companies with a high share of sales in China have recently outperformed their stocks. Should the dispute between the two countries continue to worsen, price pressure could arise for these stocks – and this would put a strain on the stock exchanges as a whole.
Washington had recently expressed concern about China’s restrictive security law for Hong Kong. The project would be the most extensive encroachment on the actually guaranteed autonomy of Hong Kong. Tensions between the United States and China had recently intensified anyway – also because of the corona crisis.
Trump also announced Twitter and Co. in the middle of the campaign for the White House. The US president wants to limit the freedom of online platforms to act against individual users and content. The trigger was the fact check of a tweet in which Trump claimed that absentee voting increases the risk of counterfeiting.
Shortly afterwards, Twitter provided another tweet from Trump with a warning that the post violated the ban on the glorification of violence on the service. As a result of the dispute, Twitter shares had lost more than 7 percent in the past two days and now fell by a further 3.5 percent.
Salesforce shares lost 5.3 percent. The counterparty of SAP (SAP SE) disappointed investors with shortened forecasts for sales and earnings in the current year. The recession triggered by the corona virus has depressed demand for cloud-based software offerings.
Dell Technologies paper rose 6.8 percent to its highest level in three months. The technology group performed significantly better than expected in the first business quarter. Analysts predict that the manufacturer of single-user and mainframe computers could wrest market share from competitors in the Corona crisis