Lockdown Hopes Meet Geopolitical Anxiety in Whiplashed Markets
- Hong Kong clashes raise temperature in U.S.-China standoff
- ‘Marked’ weakening of dollar in prospect, says Morgan Stanley
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The competing themes of U.S.-China tensions and the reopening of virus-battered economies will probably ensure a mixed and tentative start to the week for global markets.
With the open in Sydney muted, markets looked set to maintain that holding pattern until the U.S. and other markets return from their holiday-extended weekends the next day. But the chance of conflict between Washington and Beijing won’t be far away, with renewed clashes on Sunday between police and protesters in Hong Kong only adding to the sense of discord. The offshore yuan’s record low is now on traders’ radars.