Global markets are jittery after China’s parliament moved forward with national security legislation for Hong Kong and with President Trump holding a press conference later today on potential sanctions on Chinese officials. A revocation of Hong Kong’s favored status is considered a worst-case outcome of the press conference for investors.
Amid the geopolitical drama, Japan’s Nikkei 225 fell back from a three-month high with a drop of 0.2% and Australia’s ASX 200 declined 1.6%. Hong Kong’s Hang Seng was off 0.9%, while the Shanghai Composite Index gained 0.2%. In Europe, stocks have started the day off in negative territory, with the Stoxx 600 Index posting a 1.3% drop at midday.
U.S. stock futures are pointing lower. The yield on the benchmark 10-year Treasury note was down to 0.66% and the yield on the 30-year bond fell to 1.43% at last check.