Rebounding. The three main stock indexes made solid gains on Wednesday, recovering from Tuesday’s selloff. Hong Kong is formally withdrawing an extradition bill that had sparked widespread protests. U.K. Parliament passed a bill to block no-deal Brexit. In today’s After the Bell, we…
watch Hong Kong withdraw a controversial extradition bill after months of unrest; wonder if that concession could affect the U.S.-China trade war; and check on the latest episode of the Brexit saga.
All three major indexes rose on encouraging news world-wide. The Dow Jones Industrial Average rose 237.45 points, or 0.91%, to close at 26,355.47. The S&P 500 added 31.51 points, or 1.08%, to finish at 2937.78, and the Nasdaq Composite gained 102.72 points, or 1.30%, to close at 7976.88.
After nearly three months of social unrest in Hong Kong, Chief Executive Carrie Lam offered her first major concession to protesters’ demands and formally withdrew a controversial extradition bill that sparked the protest in the first place. The withdrawal only addresses one of the five demands from the protesters, and many view it as a compromise from Beijing to reduce tensions and weakening support for the protests.
Investors are temporarily relieved as the protest has been disruptive to Hong Kong’s business environment over the past few months. The Hang Seng index jumped 3.9% on Wednesday, after tumbling 8% over the past two months.
Still, data show that the sharp decline in Hong Kong shares due to anti-China protests haven’t refrained Chinese investors back from investing in Hong Kong stocks, according to Ipek Ozkardeskaya of