(04 JUNE 2020)DAILY MARKET BRIEF 1:Profit taking on softer risk appetite.

<p>Tensions between the US and China escalate as China blocks American shippers from reentering China and Donald Trump suspends Chinese airline passenger flights to the US. The UK on the other hand announced it will welcome three million Hong Kong residents that have seen their rights and freedoms smashed by the new national security law. HSBC and Shanghai Banking Corporation, two British institutions which have strong ties with mainland China, backed the new law, however. HSBC shares gained 1.57% in Hong Kong, on relief that the bank certainly won’t lose its access to a major business pillar as a result of frictions with the Western world. And a strong ADP read gave a major boost to investors sentiment in the US, as the data showed that the US economy lost 2.76 million jobs in May, meaningfully better than 9 million decline expected by analysts and nearly 20 million job losses announced a month earlier. The ISM non-manufacturing PMI confirmed a slower contraction in May. Both data suppor</p>