Reuters: Wall Street rises on strong Chinese data, Hong Kong and Brexit news5 September 2019 | 02:02 | FOCUS News Agency
Lawmakers in Britain’s lower house of Parliament voted late in the day to approve legislation designed to prevent Prime Minister Boris Johnson’s government from taking the country out of the European Union without a deal.
U.S. stocks opened higher and continued to rise as the day progressed after data showed activity in China’s services sector expanded at the fastest pace in three months in August, providing a boost to the world’s second-largest economy, which has struggled to reverse a prolonged manufacturing sector slump.
Also, Hong Kong leader Carrie Lam withdrew an extradition bill that had triggered months of often violent protests in the Chinese-ruled city.
“There’s relief the tensions in Hong Kong have subsided,” said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. “That follow-through, in the absence of other bad news, is letting the market drift higher.”
Investors fled equities on Tuesday after data showing a contraction in U.S. factory activity in August and after a new round of tariffs from Washington and Beijing went into effect over the weekend.
“Some of the pessimism we started the month off with has eased slightly,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, in Charlotte, North Carolina, citing the combination of factors including the China data, Brexit progress and the Hong Kong news.
“Anything that happens that could possibly derail a hard Brexit is a positive for stocks,” he added.
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