Today the markets continue to be under the influence of negative global events. Risk aversion is high, so safety assets and precious metals are doing better than other trading instruments today.
There is turmoil in Hong Kong, where people are protesting against a controversial extradition bill. Hong Kong has a special administrative status within China and a separate judicial system. Protesters feel the bill might make their system more exploitable by China and have called for it to be dismissed. As the protests have dragged on for months, many other claims have surfaced, and different groups have clashed on the streets of Hong Kong. Moreover, there have been allegations of police violence against protesters dubbed “rioters.” This has further contributed to the chaos which caused the closing of Hong Kong’s main airport yesterday.
Argentina is also a major source of anxiety for investors right now. The country just recently had to be bailed by the IMF after a default. Now that the President has lost in the primary elections, Argentina seems headed for more uncertainty. Analysts speculate that the country might even default a second time.
Political turmoil in Europe also continues. In Italy there is talk of a vote of no-confidence against the government and preliminary elections, while in the UK politicians are torn over the perspective of a hard Brexit.
