China tells state firms to halt purchases of major U.S. farm products

Darnell Taylor
June 1, 2020

Stock indexes were mixed in morning trading on Wall Street Monday as investors balanced cautious optimism about the reopening of businesses shut down because of the coronavirus pandemic against worries that the civil unrest across the USA over police brutality could disrupt the economic recovery and widen the outbreak.

Hong Kong affairs are purely China's internal affairs, and no country, organization or individual can interfere in any way, the spokesman stressed. A trade war between the two countries roiled markets for much of 2019, and ended only after both sides agreed to a phase-one deal and pledged to continue negotiations to address other hot-button issues.

"China is firmly opposed to this", adding that "any words or actions by the US that harm China's interests will meet with China's firm counterattack".

"Nothing that has happened since the market closed on Friday has been market-positive", said Art Hogan, chief market strategist at National Securities.

The decision follows a vote by China's ceremonial parliament to bypass Hong Kong's legislature and enact national security legislation for the semi-autonomous territory which criminalises sedition, treason, or secession, which critics say targets the city's pro-democracy protesters.

In European stocks, gains on the Stoxx Europe 600 were led by Associated British Foods, owner of clothing retailer Primark.

The Twitter account of the Global Times has also published clips from the U.S. protests, including one of a police vehicle ramming into protesters in NY city.

"Markets are assuming it won't last".

"Why does the U.S. lionize the so-called Hong Kong independence and black violence elements as heroes and activists, while calling people who protest against racism "rioters"?" "Too soon to tell".

'No justice, no peace': Protests resume in NYC for 4th day
At least five burned-out NYPD vehicles that remained near Manhattan's Union Square were towed early Sunday afternoon. De Blasio said that protests will be respected and police should not have to interfere if they remain peaceful.

"The baton of sanctions that the United States is brandishing will not scare Hong Kong and will not bring China down", the People's Daily wrote in response to the threat.

The Hang Seng Index was up 3.5 per cent by 2:55pm local time on Monday.

The Office of the Commissioner of the Chinese Foreign Ministry in the Hong Kong Special Administrative Region (HKSAR) Monday slammed the United States for smearing "one country, two systems" and Hong Kong's high degree of autonomy, and stressed that the USA threat or sanction will not intimidate the Chinese people including Hong Kong compatriots.

"I want to ask Speaker Pelosi and Secretary Pompeo: Should Beijing support protests in the USA, like you glorified rioters in Hong Kong?" he asked in one message, addressing U.S. Speaker Nancy Pelosi and Secretary of State Michael Pompeo.

"China has already prepared for the worst".

In Europe markets traded mixed, as Britain's FTSE-100 rose 0.75%, France's CAC-40 gaimed 1.04% and Germany's DAX dropped 1.65%. Smaller company stocks were faring better than the rest of the market, driving the Russell 2000 index 1.1% higher.

China said on Monday U.S. attempts to harm Chinese interests will be met with firm countermeasures, criticizing a U.S. decision to begin ending special treatment for Hong Kong as well as actions against Chinese students and companies.

"The short-term overhang is removed", Mr. Au said.

The Caixin/Markit Manufacturing Purchasing Manager's Index - a survey of manufacturing activity in China - amounted to 50.7 for May, indicating expansion.

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