Chinese spy balloon impact on markets- equities fall, gold rises; will market sentiment burst over concerns-
时间:2024-06-26 12:20:04 阅读(143)
A suspected Chinese spy balloon found flying over American land has caused the discord between the US and China to grow further. Analysts and experts believe that the mounting geo-political tension between the territorial giants could cause dismay for investors and markets across the globe. The balloon carried surveillance equipment, according to American officials familiar with the matter. While Beijing claimed ownership of the balloon, the Chinese government maintained that the balloon was merely a weather balloon that had flown off-course, expressing regret over the matter. A US fighter jet shot the balloon down on President Biden’s orders, causing the conflict to mount further.Effect on asset classes
Deepak Jasani, Head of Retail Research, HDFC Securities, said that apart from the strong US unemployment data, a critical factor behind the fall in global stocks is the spy balloon. “Global stocks were largely down after… geopolitical concerns increased after the United States shot down a suspected Chinese spy balloon that had floated across the country for days,” he said. However, Akhilesh Jat, Category Manager – Equity Manager, CapitalVia said the markets aren’t factoring in the worst possible scenario at this time.
As market sentiments in China soured, Chinese indices and stocks fell sharply as concerns regarding American sanctions escalated. Hong Kong’s Hang Seng index declined 1.3%, while the country’s benchmark index, CSI 300 Index, slid 1.3% and the Shanghai Composite gave up 0.8%. The listed retail heavyweight, Alibaba, fell 0.9% on the NYSE. Wall Street was also faced with dampening sentiments on Monday. The country’s primary indices extended losses as the Nasdaq Composite tanked 1% overnight. Dow Jones and S&P 500 also closed lower.
As China reopened, the end of restrictions should progressively assist in removing supply chain obstructions. The operations and investment of multinational corporations are boosted by facilitated cross-border travel, said Akhilesh Jat, CapitalVia. However, if the Chinese government retaliates, it could lead to a potential down-fall in the global equity market.
However, he added that there will be no long term impact of this current issue. “China is fighting against COVID and the US is fighting against inflation. So this can only have a short-term effect because no nation can currently afford significant political unrest. Every nation is attempting to grow their economy, thus in my opinion both will try to avoid any significant conflicts,” Akhilesh Jat, CapitalVia said.
猜你喜欢
- Radhakishan Damani’s DMart stock jumps 4% on six-fold rise in Q1 profit; should you buy, sell, hold-
- US Stocks- Futures rise as focus turns to Powell speech
- Rajeev Chandrashekhar inaugurates ten skill training centres in Goa under PM Vishwakarma initiative
- Uni Discovery reports significant increase in university Applications among Indian students this year
- BJP leadership wants senior leaders, including RS MPs, to contest Lok Sabha elections, free to choose seats
- UPSI- SC junks Sebi plea in Bajaj Auto case
- Utkarsh Small Finance Bank files fresh draft papers; cuts IPO size
- Rakesh Jhunjhunwala stock tanks 54% in one year, Jubilant Pharmove Q4 profit falls 72%; stock gets upgrade
- US CPI Data- What to expect from the inflation release today-