Wall Street’s main indexes rebounded on Wednesday, after robust economic data from China, easing tensions in Hong Kong and British MPs approval of a law to delay Brexit provided relief to investors worried about global growth. MPs 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.
US 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. Investors fled equities on Tuesday after data showing a contraction in US factory activity in August and after a new round of tariffs from Washington and Beijing went into effect over the weekend.
The president of the New York Federal Reserve Bank, John Williams, said the US economy appeared to be in a good place while saying that he is ready to “act as appropriate” to help avoid a downturn.Morning-Market-Note-Thursday-5th-September