Mark Haefele is a chief investment officer. He said that the more considerable risk for global investors will be what happens if the market becomes further enmeshed in broader relations. Thus, more turbulence in China-United States relations prompted some investors, such as UBS Wealth Management, to hold a “defensive” position in Hong-Kong.
China proposed national security legislation for Hong Kong. This could lead to sanctions of the United States and threaten the status of the city as a financial hub. That is what Robert O’Brien, White House National Security Adviser, said on Sunday.
Financial markets closed for public holidays on Monday in the United States, Singapore, and Britain. Thus, in early trade, the weekend developments hit risk aversion in broader markets.
Against both the euro and the United States dollar, the Sterling was also on the back foot. This happened because of the political pressure growing on the British Prime Minister Boris Johnson, after firing senior adviser Dominic Cummings.
The United States Dollar and Others
As already said on Monday the market was closed in the United States.
Cummings is the architect of the 2016 campaign to leave the European Union. He is widely considered to be Johnson’s most influential strategist. He fell under pressure after reports that he travelled from London to northern England during a nationwide lockdown in March when his wife was ill with COVID-19 symptoms.
For European policymakers, it is a potentially significant week. This is because there are debates concerning the outlines of a recovery fund. That recovery fund aims to help member nations. Thus, on Monday, the euro steadied around $1.09.
Austria, Denmark, Sweden, and the Netherlands want loans from a time-limited fund. The fund is for nations that struggle with recovering from the pandemic. They do not wish for the grants proposed by France and Germany last week to be the European Union’s coronavirus recovery plan.
The Franco-German plan sent the euro rallying above $1.10 last week.
This is the current news of the market.
- Trading Instrument