This Tuesday global markets They are aware of the new risk associated with geopolitical tensions between China and the United States.
Despite the warning about ChinaSpeaker of the US House of Representatives Nancy Pelosi arrived in Taiwan as part of a tour of several Asian countries.
China considers Taiwan part of its territory that it must reunite, so the arrival of a US representative in the region was seen as a provocation, and the Chinese army warned that it would launch “selective military action” in response.
This growing tension between USA and China had an almost immediate impact on the economy, causing oil prices to plummet and stock markets such as Wall Street to plummet.
The price of copper falls
In the morning, the international reference price for copper on the London Metal Exchange (LME) fell 0.7% to $7,762 per tonne.
This metal has shown a strong decline in recent months, and according to Reuters, it has already fallen by 20% in 2022 due to slowdown world economy.
It is worth noting that China is the main buyer of copper, which is used in energy and construction, while Peru is the second largest producer of this metal in the world.
throw in bags
Reuters reported this morning that the major indices Wall Street They fell in the face of rising tensions.
“Any geopolitical concerns could cause traders who made a lot of money last week to take some (profits) off the table,” market participants told the agency.
indices Wall Street the loss represented the Dow Jones Industrial Average, which fell 0.64%; S&P 500 lost 0.07%; and the tech Nasdaq, which fell 0.2%.
Among those hit were chip makers, as they are heavily dependent on China, and industrial company Caterpillar, which fell 3.6% and was already hurt by a slowdown in construction activity in the world’s second-largest economy.
Reuters warns that this geopolitical uncertainty comes at a time when financial markets They are struggling to cope with the aftermath of the war in Ukraine, the energy crisis in Europe, soaring inflation and tightening financial conditions.
In addition to the New York stock market, the stock markets of Shanghai and Hong Kong also reported a fall, showing losses of more than 2%.
Source: RPP
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.