The United States has announced that it will add 33 Chinese companies and institutions to the blacklist, and White House national security advisor Robert O'Brien warned against sanctions if Beijing implements national security laws in Hong Kong. Chinese Foreign Minister Wang Yi, in turn, said that Americans should abandon their wishes for change in China and warned that US actions are pushing both countries to the brink of a new cold war.
Such statements may reduce investors' appetite for risk, which may translate into a change in sentiment in the stock exchanges or commodity markets. Events in Asia may also affect cryptocurrencies. Today, due to the day off, both in the UK and in the US, investors do not seem to be very active. Turnover is low, so it could be expected that the reaction to weekend events or current statements may not come until tomorrow. However, we are already seeing the strengthening of the safe and secure US dollar, which seems to be the most expensive to euro in a week. As a result, the futures contract for the index of the American currency has returned around 100.00 points and is also at its highest level in a week.
Meanwhile, in Europe, the beginning of the week brought a slight increase in stock indices. European countries are gradually opening their economies. First hairdressers and restaurants and now gyms, swimming pools and sports centers have reopened in Italy and in some regions of Spain, including Madrid and Catalonia.
The Netherlands, Austria, Denmark and Sweden have rejected the subsidy concept and these countries have counter-proposed 500 billion euros to the German-French Recovery Fund, according to news from information services.
The Japanese Nikkei 225, which grew by 1.73%, was the best performer today on the stock market indexes. It seems that the immediate reason for this may be the expectation of further state aid. The "Nikkei" newspaper reported that the government is considering a new stimulus worth 100 trillion JPY (930 billion dollars), which includes mainly financial aid to companies. The package would be the successor to a record spending plan of JPY 117 trillion implemented last month.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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