Hong Kong bills intensify Sino-US tensions
Fiona Cincotta October 16, 2019 5:08 AM
The tensions between the US and China intensified overnight after the US House of Representatives approved three bills supportive of Hong Kong protestors, a moved that riled China
The tensions between the US and China intensified overnight after the US House of Representatives approved three bills supportive of Hong Kong protestors, a moved that riled China sufficiently to threaten countermeasures if the bills are signed into law later this week by the US President. The escalation comes only a day after President Trump postponed the next set of tariff hikes on Chinese imports and pushes the prospect of a quick resolution to trade talks further into the distance.
The tensions over Hong Kong have already eroded early gains in Asian markets and will dent some of the optimism building from a first set of positive Wall Street earnings. Results from tech companies have yet to come and the expectations here are that the trade war has significantly dented growth.
Marathon Brexit talks yield no results yet
The EU and Britain continue to toil on a last minute Brexit deal which is still lacking a workable solution for the Irish border. Although some comments from the negotiators indicated that there might be a resolution within hours it may be slightly too optimistic to interpret that as a Brexit resolution as the proposal still has to get past MPs in a vote this weekend. The FTSE is struggling to remain in positive territory as declines in the home building sector and a drop in Hargreaves Lansdown shares balance out rises in pharma and a rally by publishing firm RELX.
The pound, though a touch weaker this morning remains much stronger than it has been for months, trading at $1.2726 against the dollar.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.