Aug 04, 2019
Unrest in Hong Kong Adds to Market Volatility
Currently, China is in direct confrontation with the US and Hong Kong and as a result, the global markets are volatile. The current conflict with Hong Kong is escalating quickly and protestors are working hard to shut down the city. These Hong Kong protestors are concerned about China’s control over wanted people seeking protection in the city. If China succeeds in bringing these people back, protestors are concerned that it will increase Chinese control over rules and regulations in Hong Kong. In addition, the trade war between the US and China is heating up. Last week, President Donald Trump announced more taxes on Chinese products.
With these tensions, volatility in the markets has increased, yet the Chinese volatility trade is positive. Gold prices and the value of the Japanese yen (JPY) are rising as investors look for safe-haven assets, while crude oil prices and the Australian dollar (AUD) are dropping as demand from Chinese production drops too.
In other financial news, Bitcoin is managing to rise again in response to tensions in Asia. Bitcoin is now trading at around $11,570, 8 percent higher. In addition, the digital currency’s market dominance has increased and it now owns 67% of the market. Based on this, it is clear that other cryptos are not advancing at the same pace as Bitcoin.