Hong Kong is one of the main business hubs in the world. Political crisis in Hong Kong is a severe problem for the region as it hurts the local economy. Hopefully, Hong Kong’s government made the decision to withdraw the extrusion law.
This movement started when Hong Kong’s government introduced an extradition law.
Stock market update
It took several months for Hong Kong’s government to withdraw this bill. The U.S. stock markets increased after this decision. The Dow Jones Industrial Average rose by 226 points. S&P 500 index also benefited from this news. The Nasdaq 100 futures also increased as well.
The Dow Jones Industrial Average fell by 285 points on Tuesday. The news about the law had a positive impact on the Dow Jones.
It was a sign of relief for the stock markets in Hong Kong. Hang Seng index increased by 3.9% to 26,523.23.
Railway operator MTR in Hong Kong had to deal with problems created by the protests. Its infrastructure sustained damage, and its daily operations were disrupted. After suffering financial losses, company shares are back on track as its shares rose by 6.4%.
Another company connected to the transportation business is the Cathay Pacific. This company is in hot waters as Chinese officials are not happy with the way it treated the protests. Its employees took part in the demonstrations which angered the authorities. Cathay Pacific’s shares rose by 7.21% on September 3.
The shares of European stock indexes joined stock markets across the world as its shares also increased on Wednesday.
The Stoxx Europe 600 index increased by 1.15% to 384.19. Meanwhile, the German DAX index rose by 1.34% to 12070.34. The French CAC 40 rose by 1.28% to 5536.16. The shares of U.K.’s FTSE 100 rose by 0.86% to 7330.59.