Chinese spy balloon impact on markets- equities fall, gold rises; will market sentiment burst over concerns-
时间:2024-06-26 20:27:53 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.
US, China markets fallAs 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
- Maratha reservation- SC to consider Maharashtra govt’s curative petition on Jan 24
- JM Financial’s stock picks to drive portfolio gains
- Many districts of Uttar Pradesh inundated; CM Yogi Adityanath conducts aerial survey of flood-affected places – PHOTOS
- JPMorgan upgrades India to ‘overweight’ on higher government spend
- Jefferies initiates coverage on Honasa Consumer with Buy recommendation, sees 57% upside
- Learner’s Park; A fulfilling career often sprouts from genuine enthusiasm, says Dhruv Galgotia of Galgotias University
- Tariff cut may boost India’s phone exports to $39 bn by 2027- ICEA
- Jefferies reveals striking differences- Best India portfolio stock skyrockets by 309%, worst China stock plunges 55%
- JSW Steel consolidated crude steel production for Q3FY24 at 6