(Bloomberg) -- Stocks in Europe and Asia retreated along with U.S. equity-index futures on Wednesday as investors digested President Donald Trump's latest comments on trade as well as unrest in Hong Kong. Treasury yields dropped.
Banks led the decline as the Stoxx Europe 600 index fell after disappointing earnings from ABN Amro Bank NV. Futures on the S&P 500 also slipped after the underlying gauge closed just shy of a record on Tuesday. Trump added little new insight into the progress of U.S.-China trade talks on Tuesday, but while he said a deal could happen soon he also warned of escalating tariffs if an agreement isn't reached. Most government bonds gained alongside U.S. notes. The dollar edged higher.
Hong Kong's benchmark equity gauge slumped as the city endured a third day of unrest, with lenders including HSBC Holdings Plc and BNP Paribas SA encouraging employees to stay at home as violence continues. Japanese shares retreated along with those in South Korea and Australia. New Zealand's dollar jumped after the country's central bank unexpectedly kept interest rates unchanged.
The conflict in Hong Kong is a reminder of lingering geopolitical risks as the year draws to a close, while trade issues remain far from resolved. The prospect of a deal between the world's two biggest economies has become key to sustaining a rally that drove U.S. stocks to records in recent days. The U.S. and China have yet to announce a new location or time to seal the agreement after an international gathering in Chile was canceled, and it's unclear whether Trump's renewed tariff threats will move things forward.
Later Wednesday, attention will turn to U.S. data on consumer inflation, before Federal Reserve Chairman Jerome Powell addresses Congress.
Elsewhere, gold rose and crude oil edged lower. Emerging-market stocks and currencies declined.
Here are some key events coming up this week:
These are the main moves in markets:
--With assistance from Andreea Papuc.
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