Stocks and US equity futures slid Tuesday amid escalating US-China tension over Taiwan and deepening worries about a global economic slowdown, driving investors into the safety of government bonds.
The Stoxx Europe 600 fell 0.6 per cent, with energy among the few industries bucking the trend after BP Plc hiked its dividend and accelerated share buybacks to the fastest pace yet after profits surged. An Asian share index slid the most in three weeks, with some of the steepest falls in Hong Kong, China and Taiwan. Contracts on the S&P 500 and Nasdaq 100 slumped as much as 0.8 per cent as July’s equity market rebound stumbled into August.
The visit may end up being another “short-term dislocation” for markets but “it’s always concerning when they do happen,” Ayako Yoshioka, senior portfolio consultant at Wealth Enhancement Group, said on Bloomberg Radio. “Over the long run we fear that a Taiwan war is more likely than not” according to Matt Gertken, chief geopolitical strategist at BCA Research Inc. He recommends government bonds over equities, US defensive sectors and haven assets.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
White House: U.S. will not be intimidated by China; Pelosi has right to visit TaiwanWASHINGTON — The White House said on Monday it expected China in coming days to escalate its response to a potential visit by U.S. House of Representatives…
Read more »
U.S. President Biden urges Russia, China to engage in nuclear talksJoe Biden says China has a responsibility to play a leading role in nuclear non-proliferation
Read more »
TD buying Cowen for US$1.3B in U.S. investment banking push - BNN BloombergThe Toronto-Dominion Bank confirmed Tuesday morning that it has agreed to buy Cowen Inc. in its latest U.S. takeover.
Read more »
U.S. to announce US$1B to states for floods, extreme heatThe White House is making more than $1 billion available to states to address flooding and extreme heat exacerbated by climate change.
Read more »
White House decries China rhetoric over Pelosi Taiwan visitThe White House on Monday decried Beijing's rhetoric over an expected visit by House Speaker Nancy Pelosi to Taiwan, vowing the United States “will not take the bait or engage in saber rattling” and has no interest in increasing tensions with China.
Read more »
Pelosi set to visit Taiwan despite China warnings, sources sayPelosi, who began an Asia trip earlier on Monday in Singapore, was due to spend Tuesday night in Taiwan, three people briefed on the matter said
Read more »