Hong Kong eased extradition bill tensionsSeptember 5, 2019
The Hong Kong extradition bill will be fully withdrawn
On Thursday Carrie Lam, Hong Kong’s Chief Executive reemphasized the fact that the problematic law that managed to upset the people of Hong Kong resulting in mass demonstrations will be completely removed with “no debate.” On Thursday Carrie Lam announced at a routine press conference that the law “will be fully withdrawn, there will be no debate and no voting.” Yesterday, Lam published her decision, to remove the controversial extradition law that has ignited months of huge rallies that have become increasingly violent. Basically, the extraction bill was aiming to change the way people in Hong Kong get to trial by sending them to mainland China for trial.
Dow futures got 300 points on U.S-China trade developments
Early today futures increased by 300 points, leading to a positive opening of more than 305 points.
Yesterday U.S. futures surged due to the positive news that the U.S. and China had agreed to go back to the table in early October for another series of trade discussions. Futures in both countries went higher.
On Thursday China’s Commerce Ministry published a statement during Asia session, stating that China’s top negotiator about trade had spoken with U.S. Treasury Secretary Steven Mnuchin and Robert Lighthizer the Trade Representative.
Risk appetite presses on the safe haven gold
On Thursday the famous safe haven Gold fell because investors’ risk appetite supported China and the United States agreed resumption of discussions to achieve a deal and stop their ongoing trade conflict. U.S. gold futures fell 0.4% to $1,553.09 per ounce.
Spot gold dropped 0.5% to $1,545.36 per ounce and it looks set to lose its three-day gaining streak.
Oil rose following U.S-China agreement
On Thursday, Oil improved bouncing from its earlier declines. The improvement came after the U.S. confirmed that the discussions with China will be resumed in the coming weeks in order to strike a trade deal. That confirmation is now providing support to the hope that the conflict that has disturbed the global economies all these months will probably get resolved. WTI went up 17 cents, to $56.43 a barrel, and up to now increased more than 4.0% the previous session. That was the largest percentage increase since July. Brent crude gained 21 cents reaching $60.90.