Hong Kong Slips into Recession, however Fed Assembly Steals the Highlight

Hong Kong Economic system Slips into Recession:

• Hong Kong has slipped right into a technical recession following months of protests
• The Cling Seng Index is down greater than 10% for the reason that protests escalated in Might
• That mentioned, the market impression of Hong Kong’s financial recession has been overshadowed in anticipation of Wednesday’s Fed assembly

Hong Kong Slips into Recession, however Fed Assembly Steals the Highlight

Hong Kong successfully fell right into a recession over the weekend as metropolis officers revealed a preliminary GDP studying would present two successive quarters of contraction – the technical definition of an financial recession. Months of protests have halted development on the planet’s 31st largest economic system, related in dimension to Eire and South Africa, materially compounding international development fears. In response, the Cling Seng Index has fallen greater than 10% for the reason that protests escalated in Might.

Cling Seng Index Value Chart: Every day Time Body (January – October) (Chart 1)

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That mentioned, Hong Kong’s slowdown has been largely overshadowed by the upcoming FOMC assembly and information to be launched from america and Canada later this week. Whereas undoubtedly essential, the information is prone to reveal solely minor modifications, whereas concurrently overshadowing a flailing Hong Kong economic system. To make sure, Hong Kong serves as one of many world’s key…