As if China didn't have enough on their plate with trade war brewing, but now China's lawmakers have stepped into an angry hornet's nest of sorts as Hong Kong's autonomy movement gathers local steam and international support. So extracting themselves from this uprising could be a delicate and very painful proposition at best. Let's face it this extradition bill will have massive negative connotations for foreign organisations and mainly how executives would publicly express themselves in Hong Kong with possible extradition to China hanging over their heads if they unwittingly stepped out of line.
China Equity sentiment remains extremely soggy as trade war fear are getting amplified by the HK uprising, which is casting a dark shadow over Asia equity markets. As such, China equities were given another slap today, but we are starting to see the contagion effect across global markets which is compounded by tumbling oil prices, traders rethinking their FOMC strategy.
ON the flip side the HK tumult remains an unexpected boon for Gold markets which is back in gold rush mode.