HONG KONG, July 8 (Reuters) - Hong Kong shares are seen retreating for a third straight session on Wednesday with lower crude oil and metals prices taking a toll on commodity-linked stocks.
Wall Street stocks fell overnight as talk swirled of the need for a second round of stimulus spending for the United States, whipping up fears the economy was not yet on the road to recovery.
An advisor to the administration of President Barrack Obama said the United States should plan to possibly provide a second round of stimulus funding to prop up the economy after the $787 billion rescue package launched in Feb.
The comments come at a time when investors are already questioning the pace and sustainability of a global economic recovery. For details, see [ID:nSP379268].
U.S. crude futures dropped towards $62 per barrel on Wednesday, extending losses from the previous day after industry data gasoline stockpiles rose more than expected last week.
The benchmark Hang Seng Index dropped 0.7 percent to 17,862.27 in shrinking turnover on Tuesday.
STOCKS TO WATCH * Bank of China on Tuesday said it had issued 40 billion yuan ($5.86 billion) in subordinated bonds in the national interbank bond market on July 6, and the funds raised would be used to replenish the supplementary capital of the bank. For statement please click http://www.hkexnews.hk/listedco/listconews/sehk/20090707/LTN20090707611.pdf
* Hutchison Telecommunications International Ltd, a telecommunications arm of Hutchison Whampoa, late on Tuesday said it had invited bids for its stake in Israeli mobile operator Partner Communications. ------------------- MARKET SNAPSHOT @ 2240 GMT --------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 881.03 -1.97% -17.690
USD/JPY
Market Summary *Oil falls as recovery fears spur risk aversion [nSP379393] *Wall St hits 10-week low amid talk of new stimulus [nN07333710] *Yen gains, dollar edges up as risk aversion rises [nN07331291] *Treasuries shrug off soft sale of 3-year debt [nN07329235] (Reporting by Parvathy Ullatil; Editing by Chris Lewis)