Dow Jones futures followed global stock markets lower in Monday morning trading after escalation of protests in Hong Kong unnerved investors. Reports monitored from Hong Kong reported that police fired on protesters, killing at least one person and wounding others. Protests in Hong Kong have entered the 4th month and have paralyzed transportation and the educational sector, with universities remaining closed as students joined in the protests.
Investors fear that greater force will be deployed by China in an attempt to exert greater control over the region. Added to this factor is concern that the signing of Phase 1 of the US-China trade agreement may experience delays as a result of disagreements on the extent of rollback of tariffs already applied on China. Chinese sources are suggesting that this is a crucial component of any agreement to be signed.
The US markets are closed for the Veterans’ Day holiday, so the Dow Jones Industrial Average would not be open for trading. Dow Jones futures will therefore be the predominant asset to be traded on the day.After surging to all-time highs last week, the Dow is pushing back from those highs. Technically speaking, this mild correction is overdue as the highs have hit the upper border of the long-term rising wedge seen on the weekly chart.