Protestors gathered at the Hong Kong airport demanding the extradition bill to be removed. Fights have been canceled, say Hong Kong airport authorities, as the international airport has been disrupted. The rallying mass demonstrations between protestors in Hong Kong and the Chinese authorities are adding to global concerns which are already very fragile.
The trade war between China and the U.S. has already weakened the global trade movement. Now, the escalating tension in Hong Kong is adding to the global woes. Investor jitters which are already high with the slowdown in growth have pressurized the Hang Sang Index down by 0.4 percent after the cancellation of flights. Meanwhile, there was a weakness in the Hong Kong dollar on Monday, as it fell by 0.05 percent.
Chinese authorities are, however, calling this protest as the “first sign of terrorism”. The weak yuan is causing more concern to investors. After President Trump had said that negotiations may break off on Friday, it caused further anxiety among investors as they look for other safe-haven assets.
The S&P futures were down by 7 percent on the unrest at Hong Kong. The 10-year Treasury yield fell to 1.690 percent on Monday. The European Market also witnessed strong unrest affected by conditions in Hong Kong. Many regional exchanges remained closed on Monday and the remaining markets witnessed very light trading. Gold prices were trading higher by 0.6 percent, while Brent crude was down by 0.4 percent.
.Amidst a day of light trade, the Cathay Pacific witnessed a steep fall of 4.9 percent, dragging prices to a decade low levels. Cathay’s largest shareholder, Swire Pacific fell almost 6.2 percent. China has barred employees supporting the protests taking place in Hong Kong from flying to the mainland. Challenges on the global front are mounting and global data do not project a positive sign with a slowing growth evident in various countries.