Pelosi’s visit to Taiwan adds new risk to stock markets: inflation still on the agenda
US stocks were down in fairly choppy trading on Tuesday, ending just off the worst levels. Shares fell on Tuesday as investors weighed in on heightened tensions between the United States and China.
Speaker of the U.S. House of Representatives Nancy Pelosi arrived in Taiwan on Tuesday, becoming the highest-ranking U.S. official to visit the self-governing island claimed by China in 25 years. His arrival set up a high-stakes showdown between the United States and China. – we will wait to see the results – but this is another risk for the markets which was unexpected
Asian markets were weaker ahead of the visit.
Stocks faltered in the early afternoon, reacting to multiple comments from regional Fed chairs who all threw cold water on the idea that the central bank will be done raising or lowering rates. anytime soon.
Chicago Fed Chairman Charles Evans said he hoped the central bank could raise its benchmark interest rate by half a percentage point in September and then continue with increases of a quarter. point until the start of the second quarter in 2023. San Francisco Fed President Mary Daly said the central bank still has work to do to fight inflation.
Overnight, the S&P 500 slipped 0.67% after falling nearly 1% earlier in the session. The Dow Jones Industrial Average fell 1.23% to 32,396.17.
Caterpillar weighed on the 30-stock index and shares fell after the company reported disappointing quarterly results.
The Nasdaq Composite fell 0.16% to 12,348.76, even as Uber jumped 18.9%
Uber has posted record revenue and says more drivers are using its platform than ever before. The company beat analysts’ expectations, posting revenue of $8 billion, a 105% increase over the previous year.
Airbnb shares traded sharply lower in late trading after the company reported second-quarter results in line with the company’s forecast, but apparently not as good as investors had hoped. At the end of the session, Airbnb shares were down 9.6%.
In the online trading world, Robinhood, the trading app that popularized one-click trading and helped fuel last year’s meme trading frenzy, said on Tuesday it was laying off about 23% of its workforce.
Overnight top performers included social media, EV charger, hydrogen, education and cannabis
In currency news, the US Dollar was firmer on key crosses, with Aussie weakness being the big FX story of the day.
An Australian dollar weakened against the US dollar yesterday, buying 69.22 (Tuesday: 70.24 US cents), 56.90 pence sterling, 92.16 yen and 68.06 euro cents.
In commodities news, iron ore futures are pointing down 0.6%.
Gold gained $2.00 or 0.1% to US$1,790 an ounce.
Silver was down $0.22 or 1.1% at US$20.14 an ounce.
Copper fell $2.40 or 0.7% to settle at US$351.85 per pound.
Oil added $0.53 or 0.6% to US$94.42 a barrel.
SPI futures point to a 0.2% decline.
Numbers around the world
Across the Atlantic, European markets closed lower. Paris fell 0.4%, Frankfurt 0.2% and London’s FTSE closed down 0.1%.
Asian markets closed lower. Tokyo’s Nikkei lost 1.4%, Hong Kong’s Hang Seng fell 2.4% and China’s Shanghai Composite closed down 2.3%.
The Australian equity market added 0.1% to 6,998 yesterday.
Three companies are ready to trade without the right to a dividend.
AMCIL (ASX:AMH) pays 2.5 cents fully franked
HVAC (ASX: CVC) pays 5 cents fully franked
Qualitas Real Estate Income Fund (ASX:QRI) pays 0.8151 cents without postage
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.