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HK election win boosts markets

25 Nov 2019

Following a win for the Hong Kong pro-democracy candidates, the Hang Seng index benefitted, with shares in Asia being traded at a higher value on Monday. The Hang Send index increased by 1.76% after positive news for pro-democracy candidates, during an election which saw a record voter turnout. 

Analyst Fraser Howie explained, “Here is a very clear sign, three million Hong Kongers came out in a very orderly fashion, made their votes and sent a very clear signal to the establishment. The message has been sent across the board, across almost every … constituency, is that there is great distrust and frustration with the government and with [Hong Kong Chief Executive] Carrie Lam.” The Shanghai composite gained 0.35% whereas the Shenzhen component fell by 0.49%. 

On Monday, the Japanese yen was being traded at 108.76 compared to the USD, after being last week’s trade value at 108.9. 

China’s gesture on Intellectual Property led the EUR/USD to trade above the 1.10 handle. The pair plunged around 70 pips from daily tops on Friday, despite the U.S. dollar still being in demand. It received a boost from positive November readings from the Euro-zone PMI print, but failed to close in on the 100-day SMA barrier. 

U.S. President Donald Trump’s comments increased optimism to see a conclusion for the trade war with China take place soon. Philadelphia Fed Manufacturing index increased to 10.4 in November and the Michigan Consumer Sentiment index was gained to reach 96.8. 

UK polls are favouring Boris Johnson’s Conservative side, ahead of the election. The GBP/USD trades around 1.2850, holding its value after the Conservative’s manifesto launch. 

The Australian dollar dropped to $0.6796.