Hang Seng futures decline after US stocks tumble on renewed Brexit contagion fears

Hong Kong stocks are expected to open lower Wednesday, as the Hang Seng Index futures July contract fell 0.4 per cent or 85 points to 20,640 in the pre-opening session.

Overnight on Wall Street, US stocks broke a four-session bull streak as Brexit fears resurfaced after

three UK financial companies suspended trading in their property funds due to an increase in withdrawals. The S&P 500 index closed 0.7 per cent lower at 2,088.55. The Dow Jones Industrial Average ended down 0.6 per cent to 17,840.62. The Nasdaq Composite finished down 0.8 per cent at 4,822.90. Energy shares tanked, after oil plunged to the lowest settlement in a week, as August West Texas Intermediate crude lost 4.9 per cent to US$46.6 a barrel and August Brent tumbled 4.3 per cent to US$47.96 a barrel.

In early Asian trade on Wednesday, WTI rebounded slightly by 0.3 per cent to US$46.76 a barrel. Brent crude also recovered 0.4 per cent to US$48.15 a barrel.

In the currency market, the British pound hit a fresh 31-year low of 1.3051 per US dollar during US trade on Tuesday. In early trade on Wednesday, sterling dropped an additional 0.5 per cent to 1.2951.

On Tuesday, Hong Kong’s Hang Seng Index declined 1.5 per cent to close at 20,750.72. Mainland China’s Shanghai Composite Index rose 0.6 per cent to finish at 3,006.39.

(SOUTH CHINA MORNING POST)