(20 NOVEMBER 2018)DAILY MARKET BRIEF 2:Markets red on US-China rivalry

President Xi Jinping’s meeting in Manila, Philippines, the first Chinese state visit in the region in 13 years, is expected to tighten the relationship between the Pacific neighbors. After their first meeting last week in Papua New Guinea, Chinese and Philippine leaders will sign investment deals in infrastructure worth USD billions, including investment in the former US Clark military base, to make it a modern city.

The recovery in US equities last week was unsustained, led by a sharp drop in tech stocks among which Apple (-3.96%) and the tech stock index Nasdaq closing at -3.03%. The S&P 500 and the Dow Jones Industrial Average also remained negative at -1.66% and -1.56% respectively. Asian shares endured the same fate, with Japanese Nikkei 225 down -1.09%, Nissan shares down -5.45%. Chinese markets have been facing a sharp drop with China mainland down -2.31% and Hong Kong Hang Seng -2.02%. European equities remain in the red across the board. The DAX leads the drop with a decline of -1.08% while the Euro STOXX 50 remains at -0.84%. Risk-off sentiment dominates the marketplace.