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The escalating crisis in Hong Kong is also weighing on the markets today.
Hong Kong was paralysed on Wednesday, with riot police making arrests in a busy business district, much of the city’s public transport suspended and all universities closed following sharp clashes overnight with anti-government protesters.
Around lunch time, hundreds of protesters in office outfits took to the streets in Central, the city’s most prestigious business district, for the third day in a row. Bricks were strewn across the normally busy, traffic-filled thoroughfares as white-collar workers shouted slogans. Some held placards emblazoned: “Do not shoot our young people!”
Even if a US-China trade deal is secured, Paul Donovan of UBS Wealth Management fears that the damage is done.
US President Trump suggested there was no uncertainty. That would seem to be challenged by quite a lot of evidence. UBS’s survey of industry leaders shows trade policy is causing uncertainty, which is reducing and changing investment. That is unlikely to be repaired by a trade deal.
Trust in the global trading order has been damaged.