In this framework, the S&P 500 They lost 26.78 pointso any 0.7%a 4,091.85 unitsIn the meantime he Nasdaq fell 19.48 pointso any 0.2%a 12.349,49. The Industrial Media Dow Jones fell 397.29 pointso any 1.2%a 32.401,11.
“The visit triggered threats from China, enough to send Shanghai and Hong Kong stocks down more than 2%. The concern would be some confrontation that further complicates the global situation“, he explained in the eToro report.
Flash China’s thinly veiled threats to the United States Pelosi’s visit and China’s military moves in the Taiwan Strait were preceded by a tense international scene fueled by the war in Ukraine and the food crisis it has created.
“Any kind of geopolitical concern can cause traders who made a lot of money last week to take a bit (of the gains) off the table,” market traders say.
On the day, losses in the industrial benchmark Caterpillar help the casualties.
Actions of the chip makers with great exposure to China fell, and Caterpillars dropped 5% as a slowdown in construction activity in the world’s second largest economy and the disruption to operations in Russia added to its supply chain problems.
For his part, hewith geopolitical uncertainty The latest news comes at a time when financial markets are struggling to cope with the fallout from the Ukraine war, an energy crisis in Europe, rising inflation and worsening financial conditions.
The stock market reaction
European stock markets add to the caution being maintained by the rest of the markets at the same time as bad news in global factories raises fears of an economic slowdown.
Global markets were nervous, and the index MSCI Asia-Pacific stocks, which exclude Japan, lost 1.4%.
European stocks ended lower in the previous session as energy sector stocks fell on lower oil prices, after weak factory data from the US, Europe and Asia raised concerns about demand.
Meanwhile, Asian markets fell on Tuesday on geopolitical fears fueled by the conflict between China and the US. Traders were already nervous about the release of data showing that the region’s economies are beginning to suffer the effects of inflation.
Hong Kong and Shanghai stock markets lost 2.4% and 2.3%, respectively, although Tapei fell 1.6%. Tokyo fell 1.4% while Sydney, Seoul, Singapore, Wellington and Jakarta also recorded declines.
In the foreign exchange market, the Japanese yen, considered a haven investment, rose to its highest level in two months against the US dollar, and the Taiwanese dollar fell 0.7%.
“The danger is increasing,” noted Stephen Innes of SPI Asset Management.
“Pelosi will definitely visit Taiwan on Tuesday, so it’s up to China to see if the situation escalates,” Innes said, noting that “it could be a storm in a teacup, but international and Taiwanese investors are quite worried.
“Nobody wants a real war, but real military games have the risk of disaster or even an aggressive escalation, and it can always lead to a tactical error.”he warned.
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