Forex
Latest financial markets news: The lack of a start of military conflict between China and Taiwan has somewhat reduced the tension in the markets
Latest financial markets news: another explosion of geopolitical tension between Beijing and Washington, triggered by the US, has a significant negative impact on global markets.
Against the background of the provocation organized by N. Pelosi, the speaker of the US Congress, about her visit to Taiwan, on Tuesday, the investors actively reduced the open positions in companies’ shares and in risky assets in general, shifting to the defensive ones. This led to a strong increase in demand for government bonds of economically strong countries, where U.S. treasuries were leading. The yen and Swiss franc as haven currencies also strengthened markedly on this wave, and, of course, the dollar received support.
But after it became clear that the Chinese were not going to attack Pelosi, but simply increased the pressure on Taiwan militarily and economically, the situation in the markets began to change radically. Sanctuary currencies have come under pressure, and demand for government bonds has declined markedly. Also in trading in Asia there is a generally positive dynamics of local stock indices, while European and American stock index futures are trading in the green zone, suggesting a positive start to trading on the European continent.
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