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US STOCKS-Wall St set to slip after U.S. law on Hong Kong rekindles trade fears

Published 29/11/2019, 14:38
© Reuters.  US STOCKS-Wall St set to slip after U.S. law on Hong Kong rekindles trade fears
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(For a live blog on the U.S. stock market, click LIVE/ or

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* China warns of retaliation after U.S. passes HK rights

* PG&E down after U.S. Judge sides with wildfire victims

* U.S. stock markets to shut at 1 p.m. ET

* Futures off: Dow 0.20%, S&P 500 0.18%, Nasdaq 0.26%

(Adds comments, updates market action)

By Arjun Panchadar

Nov 29 (Reuters) - U.S. stocks were set to open lower for

the first time this week on Friday, as trade tensions resurfaced

after China rebuked President Donald Trump's decision to ratify

a bill backing protesters in Hong Kong.

The legislation knocked global stocks off near-record highs

on Thursday, when U.S. markets were closed for Thanksgiving Day.

Wall Street has notched all-time closing highs in every

session so far this week on upbeat domestic data and hopes of an

imminent "phase one" trade deal.

But sentiment took a hit after China said on Thursday it

would take "firm counter measures" if the United States

continues to interfere in Hong Kong.

These could include barring drafters of the legislation from

mainland China, Hong Kong and Macau, the editor of China's

state-backed Global Times tabloid said in a tweet. "It is definitely a concern that the signing of the Hong

Kong bill will be seen as an impediment to an agreement," said

Rick Meckler, partner at Cherry Lane Investments in New Vernon,

New Jersey.

"At this point, investors are also using this as an

opportunity to take some profits."

The tariff war between the world's top two economies has

dented business sentiment and become the biggest risk to global

growth. The next round of U.S. tariffs is due to take effect on

Dec. 15 on Chinese goods including Christmas decorations.

U.S.-listed Chinese stocks were trading lower before the

opening bell, while trade-sensitive chipmakers including Micron

Technology Inc MU.O and Nvidia Corp NVDA.O dipped between

0.5% and 0.8%.

At 8:17 a.m. ET, Dow e-minis 1YMcv1 were down 57 points,

or 0.2%. S&P 500 e-minis EScv1 were down 5.75 points, or 0.18%

and Nasdaq 100 e-minis NQcv1 were down 22 points, or 0.26%.

Trading volumes are expected to be light as the stock market

closes early on Friday.

Shares of PG&E Corp PCG.N fell 6.6% after a report that

U.S. bankruptcy judge Dennis Montali sided with wildfire

victims, who said the company was subject to a doctrine known as

"inverse condemnation" that holds utilities strictly liable for

covering the costs of wildfires. In a bright spot, Tech Data Corp TECD.O jumped 12% as

private equity firm Apollo Global Management APO.N raised its

bid for the U.S. information technology equipment distributor to

about $5.14 billion.

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