Risk Markets Nudge Lower After President Trump Signs the Hong Kong Bill
Risk Markets Forecast, Analysis and Chart:
- US President Trump signs bills supporting Hong Kong’s rights.
- Risk markets drift lower, but the move is muted.
Q4 Forecasts and Top Trading Opportunities
Risk Markets Shrug After President Trump Backs Hong Kong Bills
A muted reaction from a range of risk-on and risk-off asset markets in early European turnover after US President Donald Trump passed into law two Hong Kong bills, inflaming relations with China. The new laws give the US power to administer sanctions on Hong Kong and Chinese officials proven to have committed human rights abuse, annually review Hong Kong’s special trade status as well as banning the sale of US non-lethal crowd control items to HK. In response to the US action, Chinese officials warned of ‘counter measures’ if the US kept on interfering in Chinese internal affairs, putting the ongoing trade talks between the two under further threat.
Traditional risk-on markets, including equities, slipped lower after the announcement but the sell-off was limited. European equity markets traded around 0.2% to 0.4% lower, while risk-off assets, including gold, the Swiss France and the Japanese Yen barely moved. Financial markets are quiet Thursday with the US Thanksgiving Holiday negatively impacting on turnover.
DAX 30, Gold and USD/JPY
The DAX 30 was down less than 0.20% and remains supported by the 20-day moving average….
DAX 30 Daily Price Chart (April – November 28, 2019)
Gold is little changed and remains near multi-week lows…
Gold Daily Price Chart (April – November 28, 2019)
USD/JPY recent uptrend remains intact and is touching the Fibonacci 50% retracement level…
USD/JPY Daily Price Chart (March – November 28,2019)
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.