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Stocks rise as risk outlooks improve across Europe and Asia

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The Dow Jones industrial average, S&P 500 index, and Nasdaq composite all rose during US trading on Wednesday.

Stocks rebounded on Wednesday as traders found relief in a broad-softening of geopolitical risks across Europe and Asia.

Hong Kong leader Carrie Lam said she formally withdrew a controversial extradition bill that incited weeks of protests around the city. Hong Kong stocks jumped about 4% on the news. The move was seen as a major easing of political tensions in Hong Kong. Some investors were growing worried the tensions could both hurt trade negotiations between the US and China and drag the global economy closer to a recession.

UK lawmakers moved to block Prime Minister Boris Johnson's brexit plan, soothing concerns that Britain could exit the European Union without a formalized deal. If the law passes the House of the Lords, it would force Johnson to request a three-month delay on the UK's departure from the EU. Investors have been jumpy over the last several weeks as a combination of geopolitical tensions throughout Europe and Asia, bumpy US-China trade negotiations, and mixed economic data has clouded the outlook for the global economy.

 

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