The Dax started today strongly into the trade – but right after it went down. What’s going on?
The movement seems to have been triggered by the escalation of the situation in Hong Kong – violent clashes between protesters and Hong Kong police took place in Hong Kong’s subway tunnels during the night to Monday – and now, as the South China Morning Post reports, all flights departing from Hong Kong have been cancelled after the protesters blocked the airport with sit-ins:
— SCMP News (@SCMPNews) August 12, 2019
So the situation seems to be escalating further – and what the markets are now afraid of is that the Chinese military will enter Hong Kong!
Beijing seems to lose patience – the military has gathered in the neighboring city of Shenzhen:
Also the police in Hong Kong now threatens with an action with “iron fist”:
While the stock markets are coming under pressure, bond yields are clearly falling as a sign of risk aversion…