Dow Jones Industrial Average (DJIA) futures climbed 200 points higher in early trading Wednesday. Optimism returned to the market as Hong Kong leader Carrie Lam bows to protestor demands and restores some calm to Asian stock markets.
Lam agreed to withdraw the controversial extradition bill that triggered mass protests across the city this summer. The withdrawal is one of five demands outlined by protestors. Hong Kong stocks jumped 4 percent overnight and pushed Asian markets higher across the board.
After a dismal start to September, which saw the Dow shed almost 300 points yesterday, traders can expect a brighter start on Wall Street this morning. At 5.09 am ET, Dow futures were 230 points higher, pointing to a strong opening.
After months of disruptive protests that saw more than a million people take to the streets, Lam’s decision to withdraw the extradition bill immediately stemmed the stock market bleeding. Below you can see the Asian markets reacting in real time.
The three-month protests, which saw Hong Kong airport grind to a halt, put intense pressure on the economy, pushing Hong Kong to the brink of recession. This morning’s relief rally in Asian stocks also spread to European markets and US stock futures.
Despite the positive news out of Hong Kong, US traders have plenty of domestic issues to bring them back to reality.
President Donald Trump remains firm in his stance towards China, threatening to get “MUCH TOUGHER” if he wins the 2020 election. In a tweet yesterday, he accused China of ripping off the US while sources claim he came dangerously close to doubling tariffs in August.
Across the pond in the UK, indecision over Brexit threatens to plunge the country into a snap election, a move that would spell disaster for the markets.
Last modified: June 23, 2020 2:34 PM UTC