As markets closed their final productive day of the week – before an inevitably lethargic post Thanksgiving Friday – Donald Trump chose his moment to sour the mood. Following this morning’s announcement that the president had signed the Hong Kong Human Rights and Democracy Act, China has vowed to retaliate.
Without shaking indices to their core, the typically light-hearted Chinese response certainly saw market sentiments turn frigid for the duration of Thursday trading.
Speaking on market movements, or lack thereof, Spreadex Financial Analyst Connor Campbell treated us to his regular candour,
“With the US off stuffing themselves senseless, Thursday was hardly the most inspiring session of trading.”
“Donald Trump’s signing of the Hong Kong Human Rights and Democracy Act , or more accurately China’s reaction to that bill, gently weighed on investors, without fully sparking a new wave of trade deal pessimism.”
“That’s perhaps because the superpowers, but especially the US, have been keen to stress that an agreement is ‘very close’/in its ‘final throes’/is only ‘millimeters away’. Of course, the Hong Kong is could be a major obstacle. But for now investors are behaving cautiously.”
“The DAX was the worst performer, and even than that only saw it down 0.3%. The CAC kept above 5900 following a 0.1% fall, while the FTSE reduced its initial losses to lose just a handful of points, returning it above 7400.”
“After surging overnight on the back of the YouGov MRP poll putting the Tories at a 68-seat majority, the pound cooled on Thursday. Nevertheless its 0.1% dip against dollar and euro alike didn’t do too much damage to a currency banking on a significant Conservative win on December 12.”
Outside of the Hong Kong issue, other major developments on Thanksgiving Thursday came from; lacklustre UK car production figures, Barclays PLC (LON: BARC) cuts its Executives’ pensions and Virgin Money UK PLC (LON: VMUK) scraps its dividend.
