Hong Kong falls deeper into recession; US-China tensions worry markets – business live

Rolling coverage of the latest economic and financial news, as investors worry about new trade war between Washington and BeijingLatest: Hong Kong’s economy shrank sharply in Q1Trump: Tariffs would be ‘ultimate punishment’ for ChinaCoronavirus – latest updatesSee all our coronavirus coverage 2.50pm BST As feared, airline stocks are falling sharply after Warren Buffett revealed he’d sold his stakes in the industry.American Airlines and SouthWest are down 6%, United has dropped 7% and Delta has lost 8%. #DOW 23398.81 -1.37%#SPX 2800.03 -1.08%#NDX 8670.89 -0.54%#RTY 1234.04 -2.10%#VIX 39.36 +5.83% https://t.co/wCU5sulpa4 2.34pm BST The US stock market has opened lower, as fears of a new US-China trade war weigh on Wall Street.The Dow Jones industrial average has dropped 1% in early trading, down 245 points at 23,478. The sour market mood of the last couple of days has been triggered most obviously by the ratcheting up of tensions between the US and China. The US is now blaming China for a cover-up and even asserting the virus was developed in a Chinese lab. Trade tariffs, which were a major concern for the market for most of last year, are once again back in the headlines, with Trump now threatening to impose new tariffs on China.However, the latest market falls are also in part no real surprise given the strength of the rebound with markets gaining more than 25% in little more than a month. The recovery was the sharpest ever out of a bear market and has looked overdone. Continue reading…
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