Global stock markets tumble, investors move towards bonds amid rising US-China tension, hawkish Fed comments

Stocks in Asia resigned Tuesday amid the increasing tension of US-China over Taiwan and deepened concerns about the slowdown of the global economy, the risks that support the demand for bonds as paradise. Stocks fell in Japan, South Korea and Australia, while the futures for Hong Kong previously spilled more than 1%. S&P 500 and Nasdaq 100 contracts declined after the Juli Global Stock Market rebounding stumbled into August.

US Speaker Nancy Pelosi is expected to visit Taiwan on Tuesday. He will be the highest American politician who visited the island in 25 years. China views Taiwan as its territory and has warned the consequences if the trip occurs.

This trip may end up being “short -term dislocation” to the market but “always alarming when they happen,” Ayako Yoshioka, a senior portfolio consultant at the Wealth Enhancement Group, said at Bloomberg Radio.

Yuan off the coast that was dipped and could not be delivered to the Taiwan dollar signifying the weakening of the island’s currency. A strong dollar gauge and profit in Yen signaled a mood.

Treasury rose, lowering the yield of 10 years to around 2.54%. Global bonds have pushed higher after data that suggests factory output shrinking or cooling in the main economy along with the price of moderation input.

Investors also oversee with alert to more potential comments from Federal Reserve officials about the need for higher interest rates to withstand increased inflation.

Hope for how aggressive the Fed must recede because of the risk of recession, so that every shift in the perception can trigger market volatility.

“You will continue to see a lot of Fed languages ​​continue to be quite Hawkish,” Larry Adam, Chief Investment Officer in a private client group in Raymond James Financial Inc., said at Bloomberg Television. But he hopes to ease inflationary pressure to allow the Fed to be “a little more accommodating when we head to the back of this year.”

The prospect of slowing demand has weakened oil, leaving it around $ 94 per barrel. Seed oil and seeds of futures after the first wheat ship since the Russian invasion left Ukraine, indicating a little relief for the strict global food market.

In Australia, the central bank is ready to lift the loan fee for the fourth month, fostering an economic slowdown in the campaign to get price pressure under control. The results of a shorter bond than the maturity of the country advanced.