August 2, 2022
United States:
US Stocks Slip as China Tension Boosts Havens: Markets Wrap
American stocks slipped for a second day, while the yen advanced as financial markets remained on edge amid heightened tensions between the US and China.
The S&P 500 retreated with equities in Europe and Asia as US House Speaker Nancy Pelosi was expected to land in Taiwan on Tuesday evening in defiance of Chinese threats. The 10-year Treasury hovered around 2.59%, and the yen strengthened versus the dollar. China views the island as its territory and has vowed an unspecified military response to any Pelosi visit.
Europe:
ECB Is Through a Third of Its Rate Hikes, Market Bets Show
Less than a month after delivering its first interest-rate hike in over a decade, traders are betting the European Central Bank is already a third of the way through its tightening cycle.
Money markets show the central bank will raise rates by an additional 100 basis points, or 1 percentage point. That’s roughly half of what was expected in late July.
Asia:
Taiwan Stocks Decline as US-China Tensions Sap Risk Appetite
Taiwan stocks fell after an expected visit by US House Speaker Nancy Pelosi renewed concerns over an escalation of US-China tensions.
The benchmark Taiwan Stock Exchange Weighted Index declined as much as 2.1%. Shares of Taiwan Semiconductor Manufacturing Co. sank 3.1%.
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