KONTAN.CO.ID - LONDON. A four-day rally that had lifted world stocks to near-record highs stalled on Thursday as a U.S. bill backing Hong Kong’s protesters became law, provoking China’s ire and threatening to derail an interim trade deal between Washington and Beijing. Fading hopes of a rapprochement between the world’s two biggest economies before additional, potentially damaging tariff hikes kick in, also helped safe-haven assets such as U.S. and German bonds and lifted the yen from six-month lows. Baca Juga: South Korea's November exports to fall for 12th month
The U.S. legislation, which threatens sanctions for human rights violations and seeks to safeguard Hong Kong’s autonomy, prompted China to warn of “firm counter measures”. “The risk-off moves clearly reflect a concern this could be an impediment to the ‘Phase One’ trade deal which is now widely expected,” said Adam Cole, a strategist at RBC Capital Markets. Wall Street’s main indexes closed at record levels for a third straight day on Wednesday, albeit in thin liquidity before the Thanksgiving holiday, after data showed U.S. economic growth had picked up in the third quarter and consumer spending had increased.