Tensions are heating up again in China- despite Coronavirus delaying their efforts, Pro-Democracy protesters have once again taken cities like Hong Kong by storm- and their impact is surprising. Here's everything you need to know, and how it concerns you:
1. Protests have fueled the current Chinese recession
China's GDP (gross domestic product) has fallen about 5.3 percent in th
e first quarter, officially sending China into their first recession in a decade. Global Markets felt the repercussions too- the Dax German Index fell over 3 and a half percent, and the Dow Jones only rose a tenth of a percent after a rocky start to the morning.
2. Coronavirus and protests are growing increasing tensions between China and the United States, and stocks will move with it
Pre-markets are up, with the Dow predicted to rise almost 200 points. But that doesn't mean the tension is over. After unconfirmed speculation that Coronavirus started in a Wuhan Laboratory, the Trump Administration fired back. Imposing higher tariffs, and moving large chains away from manufacturing in China, many fear the situation could escalate, refueling the ongoing trade war. Amid escalating trade war tensions in 2019, the Dow lost 765 points in August of 2019, in what was the worst day of 2019. But is all this talk of trade war, Coronavirus, and global recessions a need to worry? Before the most recent recession, markets rose around 4,000 points in just half a year. So if all the red graphs in global markets get you worried, think back to statistics, and remember- historically, when stocks fall, they rise again.
A look at the day in the market, May 5, and the rest of the week
Here are some of the biggest factors that can affect the week in trading
The S&P futures point upwards to a hopeful 0.3 percent
The Chinese recession is on a halt- sort of. The recession itself has not halted, but global investors can let out a sigh of relief for the time being. Market indexes in China, South Korea, and Japan are closed due to the holiday
Oil prices look to be on the rise, after a rough decline
Summary: The impact of the Hong Kong recession is moving global markets. Backlash from the democracy-hungry Chinese protesters has caused upset in China, as tensions increase between the USA and China. The Trump administration is advocating for imposing more tariffs on China, and tensions rise after heated debates of the true origin of the Coronavirus. The last major peak in the trade war caused the markets to tumble 765 points in a single day- and then rise around 4,000 points in half a year.
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