Global stock markets down, worried about tensions between the United States and China

Global stock markets down, worried about tensions between the United States and China

BUILD À DAY

Global stock markets lost ground on Tuesday after the announcement of Nancy Pelosi's visit to Taiwan, which further strains relations between the States United States and China.

European markets ended down, Paris lost 0.42%, Frankfurt 0.23% and Milan 0.35%. Only London remained in balance, at -0.06%. 

In the United States, Wall Street was more mixed. After opening in the red, the Dow Jones lost 0.46%, but the Nasdaq gained 0.27% around 4:00 p.m. GMT. For its part, the S&P500 was in equilibrium, at +0.02%.

The downward movement was initiated in the morning by the Asian stock markets, which fell sharply, against to the possible visit of the Chief of the American congresses.

All day, the eyes of the markets have remained on Ms. Pelosi's plane. On FlightRadar24, more than 300,000 people monitored the flight at the same time, causing a computer “bug” of the site.

Soon after her arrival, Nancy Pelosi insisted on the “unconditional support” of the United States in Taiwan, while Beijing, which claims ownership of the territory, described its attitude as “extremely dangerous”.

“Any disruption to Taiwanese trade as a result of these tensions may aggravate difficulties already felt in global supply chains,” particularly in semiconductors, of which Taiwan is a major exporter, said CMC analyst Michael Hewson. Markets.

The geopolitical news came on top of an uncertain context for the markets, as the publication season for half-year corporate results comes to an end and investors are once again turning to the bleak macroeconomic indicators. 

“The American economy is slowing down and we are trying to see if the recession will be only technical or if it will be a real recession”, commented Alexandre Baradez, analyst of IG France, with the AFP.

The tightening of monetary policies by central banks is also under scrutiny. The central bank of Australia notably raised its main interest rate by half a percentage point on Tuesday. 

BP surges

British giant BP soared 2.80% after posting net profit tripled year on year in the second quarter to $9.26 billion, and a 10% increase in the dividend for the period, driven by the surge in hydrocarbons.

Oil prices rose again on Tuesday, a few days before the meeting of the OPEC + alliance, after a significant drops the day before.

Around 4:00 p.m. GMT, the barrel of Brent from the North Sea, for delivery in October, went back above 100 dollars, at 101.15 dollars, up 1.13 %.

A barrel of US West Texas Intermediate (WTI) for September delivery rose 1.01% to $94.84.

Uber and the automobile in the green< /p>

Uber on Tuesday reported revenue of $8.1 billion, well beating market forecasts, despite a net loss of $2.6 billion in the second quarter. As of 3:50 p.m. GMT, it was up 15.87% to $28.50.

Automaker stocks also ended the day positively: in Frankfurt, BMW gained 0.98  %, Volkswagen 1.56 % and Mercedes 0.08 %, while in Paris, Stellantis gained 1.62 %.

On Wall Street, Tesla took 2.50 % towards 3:50 p.m. GMT. 

Luxury worried about the situation in China

The renewed tensions in China on Tuesday lowered luxury stocks, which make a large part of their turnover in the country. 

The Italian fashion group Tod's lost 2.44  % in Milan, Burberry 2.41% in London and France's LVMH and Kering fell 1.35% and 1.70% respectively.

Adler continues to crumble

German real estate giant Adler continued to fall on Tuesday and ended the day at -4.29%, having already lost 4.40% the previous day.&nbsp ;

Financial sector supervisor Bafin said on Monday that the group's 2019 balance sheet, in turmoil after accusations of fraud, was overstated by at least 170 million euros.

For currencies and bitcoin

The euro lost ground against the dollar, a safe haven in a context of geopolitical tensions. The single currency lost 0.65% to 1.0196 dollar around 4:00 p.m. GMT.  

Bitcoin lost 0.63% to $22,983.