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Daily Archives: 25th May 2020

25th May 2020

🇭🇰 Opportunity Knocks for China

MARKET CLOSE:
iTraxx Main

80.2bp

iTraxx X-Over

478.3bp

🇩🇪 10 Yr Bund

-0.50%, unchanged

iBoxx Corp IG

B+194bp, unchanged

iBoxx Corp HY

B+634bp, -3bp

🇺🇸 10 Yr US T-Bond

0.65%, -3bp

🇬🇧 FTSE 100

6285.94, (-1.33%)
🇩🇪 DAX

12733.45, (+1.64%)
🇺🇸 S&P 500

3179.72, (+1.33%)

Impeccable timing and opportunism amid the distraction…

China is going to take over Hong Kong in every sense of the word – and sooner, rather than later. They won’t be rowing back on the latest security legislation. That is that for Hong Kong as we knew it. The question is whether the Trump administration (and the world, in that sense) blinks despite the strong words from Pompeo. We might have to.

China’s Xi has prepared the ground for a drawn-out battle. The world is in Covid-19 disarray and China is seizing the moment. The stirrings of this geopolitical situation will have markets gripped this side of November. Market volatility is sure to follow.
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