In the last few days, the relations between the two world powers, already not entirely rosy, have further deteriorated due to Hong Kong.
Yesterday, Beijing officially approved one new legislation aimed at increasing central government control over the special administrative region and Washington’s reaction was not long in coming.
The markets today reacted to the latest news regarding the US-China clash and to the statements of Donald Trump, who for today has an expected press conference has been called on the topic. Things could get drastically worse in a few hours.
Markets today: US-China tension surges. Eyes on Trump conference
Yesterday, Thursday 28 May, the National People’s Assembly, the only legislative chamber of the People’s Republic of China, approved a new one national safety legislation concerning Hong Kong, an area that in recent months has had to deal with an endless series of democratic protests against central Beijing.
Under the new legislation, the Chinese government has tried to strengthen its control over the region stifling any attempt at autonomy, but the US reaction is not long in coming.
Already during last autumn Trump had expressed sympathy for the demonstrators but recently the tension has reached a new climax and for this reason the markets today have returned to look with apprehension at the latest developments in the case.
After the green light from Beijing to the new security regulations on Hong Kong, Donald Trump has decided to convene a press conference to comment on the current state of US-China relations.
The event will kick off today, Friday 29 May, but no start time or specific details have been communicated at the moment. The markets today have been affected, at least initially, and have resumed trading in uncertainty.
The reaction of the world stock exchanges
In the early hours of the morning most of the Asian indices took the downward path, with Hong Kong, Tokyo, South Korea and Australia recording the most evident reds. There China instead he continued to trade without any difficulty despite the progressive weakening of the A50.
With the passing of the hours and with the closing of the session, the however, the situation has improved and numerous indices have reduced losses if not zeroed.
In general, however, the markets today have continued to trade without known performances, highlighting some caution on the part of investors. Trump’s press conference will be one of the most monitored events of the day that could completely change the cards on the table exacerbating a conflict never completely dormant.