Global stocks are on the rise as investor sentiment has been lifted by the decision of Hong-Kong’s leader to formally withdraw the extradition bill, finally bringing peace to the region and likely putting an end to a 3-month protest. The withdrawal of the controversial bill is set to be announced later in the day and the Hang Seng Index is already registering its highest gains since 2018, with a +4.10% so far.
Photo by James Claffey.
This renewed confidence has quickly spread to the rest of the world, especially Europe, where investor sentiment had already been boosted by political events in the UK. British PM Boris Johnson lost his parliamentary majority and the chamber voted a law to prevent a no deal Brexit. Even if Johnson responded by threatening to seek a general election, this vote remains a key victory for the rebels’ alliance. An immediate bullish reaction has been observed on the Pound Sterling overnight as well as on the FTSE-100 index this morning, shortly after the opening bell, as investors welcomed the news.
Photo by Robert Bye.
In Europe, every benchmark is trading higher as each of the 19 European sectors are in green territory, with Retailers and Banks posting the best performance. Investors will also be waiting for Mike Carney’s comments before the Treasury Committee today, during which the BoE’s Chairman will discuss August inflation in the UK as well as its future relationship with the EU. In the meantime, John Williams from the FED of New York will also discuss monetary policy today, ahead of J. Powell’s speech on Friday following the new release of Non-Farm Payroll data for August: disappointing data may lead traders to bet on further rate cut by the FED this year.
