Hong Kong democrats score landslide victory in local elections - RTRS
|- Democratic candidates across the city of 7.4 million secured more than half of the 452 district council seats.
- The outcome should be risk-friendly for the immediate term; Eyes on AUD/JPY.
Reuters reported that "Democratic candidates across the city of 7.4 million secured more than half of the 452 district council seats for the first time, against a strongly resourced and mobilized pro-establishment opposition."
- "As of 5:00 a.m. (2100 GMT), pro-democracy candidates had secured a majority with at least 283 seats, compared to about 32 seats for the pro-establishment camp, according to local media estimates. A record 1,104 candidates were vying for 452 seats."
- “The government needs to know that if they don’t answer our demands, we will continue demanding and the protests will not stop,” said a 26-year-old pro-democracy voter who gave her name as Cda."
Update
"Pan-democrats apparently have scored a huge victory in HK district council elections. It's hoped they will expand influence within constitutional framework from now on,stop radical street politics. It's also hoped the elections will be turning point in ending the riots"
- Hu Xijin, the Chief in Editor for the Global Times.
FX implications:
One would presume that this is pro-risk for markets, hopefully giving the protesters a score over the elite, although only time will tell as to whether the lull in troubles leading into the elections will continue or not. President US Trump is on standby with respect to the Honk Kong bill and we are expecting announcements soon – "Trump also made clear his reluctance to sign the Hong Kong Hong Kong Human Rights and Democracy Act, which passed Congress with overwhelming support ," which impinged on US/Chinese relations, "Republican senators responded by insisting that the bill would become law, using a Congressional override of a presidential veto if needed," analysts at Westpac explained. The yen and Aussie are the most correlated currencies to US-China trade disputes making AUD/JPY a compelling technical set-up:
- Chart of the week in Analysis: AUD/JPY at a critical juncture
- AUD/JPY looks for fresh direction to stays above 100-day SMA
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