China hong kong Markets

Hong Kong, Huawei Dramatics Play Spoiler To Otherwise Bullish Narrative

"Facts on the ground".

The good news is that the reopening narrative remains largely intact, as does the global stimulus story. On the latter, Japan is throwing the kitchen sink at the virus relief effort, and Europe is taking its most serious steps down the road to fiscal integration ever. The combination of massive stimulus (both "delivered" and promised) and ongoing efforts to jump start economic activity in developed economies is powerfully bullish, especially for cyclicals and small-caps, which powered ahead again on Wednesday, after blockbuster outperformance during Tuesday's post-Memorial Day rally. A simple two-session rate of change chart for relative performance of the most popular Value and Growth ETFs illustrates the point fairly well. But this wasn't all a rotation story on Wednesday. Part of the equation was underperformance by the tech heavyweights, due in part to Donald Trump, who threatened to "close down" America's social media giants. Twitter, Facebook, Google and Amazon were all lower in the hours after Trump's broadside, delivered (unironically) via tweet. The Russell 2000 was on track to outperform the Nasdaq 100 for a fifth straight session. Trump's tech balderdash wasn't th
Subscribe or log in to read the rest of this content.

5 comments on “Hong Kong, Huawei Dramatics Play Spoiler To Otherwise Bullish Narrative

  1. Even more frightening was a quote I read from Angela Merkel which stated that the EU has a strategic interest in cooperation with China and that relations with the U.S. are difficult; but ties must remain.

    Long Euro, short USD?

  2. I remain surprised of how tame the Chinese reaction has been so far, something is going on, they have a plan to strike back in some unexpected way or their economy and reputation are so shaken by the virus that they rather take the punches now without more than a Twitter response, odd…

    • Gerardo, I noticed that the daily USD/CNY fixes have been creeping higher (i.e. Yuan weaker).

      Perhaps a subtle message to the US ?

      • You have to check those fixes against estimates. i.e., not was it weaker or stronger, but was it weaker or stronger versus what was expected

  3. Did the Canadians ever get their citizens back that were arrested after Meng was?

Speak On It

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Skip to toolbar