NEW YORK (dpa-AFX) – The US stock exchanges extended their slight losses from the previous day on Tuesday. Investors around the world are on edge as China has threatened US Secretary of State Nancy Pelosi’s visit to Taiwan later that day. It would be the highest-ranking visit by a US politician in a quarter of a century. The communist Chinese government doesn’t like that at all, because it sees democratic Taiwan as part of the People’s Republic of China. Beijing therefore also threatened possible military measures.
Der Dow Jones Industrial fell 0.93 percent to 32,492.23 points in early trading. In July, a normally rather weak stock market month, the best-known Wall Street index had recovered by almost seven percent. The market-wide S&P 500
lost 0.78 percent on Tuesday to 4086.50 points. The Nasdaq 100 fell by 0.97 percent to 12,814.83 points. The selection index, which is predominantly stocked with technology stocks, even rose by almost 13 percent in July, after falling to its lowest level since autumn 2020 in mid-June.
“A cocktail of uncertainty has overshadowed the recent good mood on the global stock markets,” commented market expert Timo Emden, referring to the geopolitical risks as well as fears of the economy, inflation and recession. Market analyst Jochen Stanzl from CMC Markets also warned not to downplay the conflict. “An attack by Russia on Ukraine was also considered unlikely by the majority.” And the fact that Russia is seeking to close ranks with China in the Taiwan conflict is likely to exacerbate the situation./ck/he
ISIN US2605661048 US6311011026 US78378X1072
AXC0244 2022-08-02/16:25
Copyright dpa-AFX business news GmbH. All rights reserved. Redistribution, republication or permanent storage without the express prior consent of dpa-AFX is not permitted.
–
