12 August 2019
Just when everything looked positive for world stock markets, the news that Hong Kong has canceled all flights made global stocks to fall. The Dollar rallied higher, Gold also rose and Oil priced crashed fell with big margins.
US stock futures and European stock markets, that were earlier trading with healthy gains, plunged in to negative. SGX Nifty was trading with 40 points’ gains but this futures index of India’s Nifty 50 also erased all those gains and turned negative.
Three big Asian stock markets: Japan, Singapore, and India are closed today for local holidays. Other Asian stock markets had been trading positive in their session, creating a positive trend for global stocks.
But the news from Hong Kong has now rattled world stock markets. Hong Kong has been troubled by citizens’ protest for over two months now. The protests are against a controversial extradition bill. Now the situation has become a risk for global stock markets as the US, The UK and China become embroiled in a war of words over Hong Kong.
Markets fear that the volatile situation in Hong Kong can turn into a full-blown geopolitical risk.
As a result, US stock futures have turned highly negative at the time of writing. Dow Jones futures have fallen by more than 100 points. European stock markets have also quickly given up their gains.
If the situation remains the same, we can expect a negative opening in US stock markets in a few hours from now.