The schizophrenic range trading seen across multiple asset classes in recent times showed no signs of ebbing overnight. The geopolitical front, however, looks to be a busy one today. The details of Hong Kong’s new security law to be enacted into Basic Law by Beijing will be fully unveiled today ahead of the handover holiday tomorrow. In response, the US has withdrawn Hong Kong’s special economic status while China retaliated by announcing visa restrictions on American’s who didn’t like the new law. India, meanwhile, banned a swath of Chinese mobile apps on national security grounds. Most notably, ByteDance’s Tik Tok social app.
Japan is allegedly considering imposing new measures on South Korea goods as part of the two sides mini trade-war dispute. But it is the usual suspects, China, the United States, Hong Kong and to a lesser extent, India, who will hold the market’s attention.
It’s conflicts with China aside, India may have a point. I have until now declined to Tik-Tok with Mrs Halley, mostly because front-row rugby players like myself are not usually gifted with natural “rhythm.” However, I have always had nagging doubts about where Tik Tok’s data is stored. Apart from a select group of countries, it just states it is held by “3rd parties.”
Circling back to schizophrenic markets, the tardiest in taking its medications, the equity markets on Wall Street, of course, continue to suffer aggressive mood swings. Sentiment on Friday approached the end of days levels as the US Sunbelt states reaped the fruits of their incompetent handling of Covid-19 with an explosion of new cases. All was forgiven yesterday though, with Housing Sales coming in above expectations. As anticipated, the certification flight of the Boeing 737-Max with an FAA pilot on board, saw Boeing’s stock jumped 14% yesterday. Who will take