Daily Alert – Thursday 28th May 2020: US-China spat continues, markets largely untroubled

Mark Nugent Daily Alert, May 2020

Daily Alert – Thursday 28th May 2020: US-China spat continues, markets largely untroubled

US Secretary of State Pompeo certified to the US Congress that Honk Kong is no longer an autonomous country due to the imposition of security measures by China. This will have implications for tariffs for Hong Kong’s exports to the US. Further, remember Huawei’s CFO? She’s still in jail in Canada while the US tries to extradite her. Well she just lost a key legal battle and now the Canadian courts are close to making a final decision on her extradition. It goes on – The US House passed a bill to sanction Chinese officials for the crackdown on the Uighur Muslims. That is now on Trump’s desk awaiting signature. China has responded to all this by saying they will take counter measures against this “meddling”. All very much handbags.

The markets seem largely unconcerned by all this jawboning.

There was a slight wobble in the JPY and AUD, taking my AUDJPY long out for +1.67%. However, equities continue to rise and my Japan225 long is now at around 4x risk in the money.

Have a great weekend when it comes and I’ll be back on Monday with your Trading Plan for Week 23.

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