clearn.png
Sunday August 7th, 2022 9:21PM

Markets dip as Pelosi's Asia trip puts markets on edge

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Wall Street is poised to open lower Tuesday as a possible visit by U.S. House Speaker Nancy Pelosi to Taiwan prompted threats from Beijing.

Futures for the Dow Jones industrials fell 0.5% and futures for the S&P 500 declined 0.6%.

China sees Taiwan as its own territory and has repeatedly warned of “serious consequences” if the reported trip to the island democracy goes ahead. Pelosi has said she is visiting Singapore, Malaysia, South Korea and Japan for talks on a variety of topics, including trade, COVID-19, climate change and security.

While there have been no official announcements, local media in Taiwan reported Pelosi will arrive Tuesday night, making her the highest-ranking elected U.S. official to visit in more than 25 years.

“The first big relief point will be Pelosi’s safe arrival in Taiwan, followed by her safe departure," said Stephen Innes, managing partner at SPI Asset Management. "No party wants a real war, but the risk of mishap or even aggressive war game escalation is real, which could always lead to a tactical mistake."

In Asian trading, Japan’s benchmark Nikkei 225 declined 1.4% to 27,594.73. South Korea’s Kospi slipped 0.5% to 2,439.62. Hong Kong’s Hang Seng dropped 2.4% to 19,689.21, while the Shanghai Composite dove 2.3% to 3,186.27.

Australia’s S&P/ASX 200 edged 0.1% higher to 6,998.10.

The Reserve Bank of Australia on Tuesday boosted its benchmark interest rate for a fourth consecutive month to a six-year high of 1.85%. It was the third consecutive hike of half a percentage point. When the central bank lifted the rate by a quarter percentage point at its monthly board meeting in May, it was the first rate hike in more than 11 years.

The cash rate is now at its highest point since May 2016 when the bank cut the rate from to 1.75% from 2%.

France's CAC 40 slipped 0.5% in early trading while Germany's DAX fell 0.6%. Britain's FTSE 100 inched up 0.1%.

On Monday, the S&P 500 gave up an early gain to end down 0.3% at 4,118.63. The Dow Jones Industrial Average dipped 0.1% to 32,798.40 and the Nasdaq fell 0.2% to 12,368.98. Smaller company stocks also gave back some of their recent gains, nudging the Russell 2000 0.1% lower to 1,883.31.

High inflation continues to drag on markets along with the potential for further interest rate hikes from central banks that could unintentionally push economies into a recession.

More than half of the companies in the S&P 500 have reported their latest earnings results, which have been mostly better than expected. However, companies have also warned that inflation is weighing on customer spending and squeezing operations. Businesses have been raising prices to try to keep up profits.

Uber jumped 14% in premarket after the ridesharing company said rides increased by 24% and revenue more than doubled in the second quarter as as Americans headed back to offices and are going out more as anxiety over COVID-19 eases.

BP shares rose 2.5% in premarket trading after the British energy giant reported that its earnings tripled in the second quarter as it profited from oil and natural gas prices that soared after Russia invaded Ukraine.

Wall Street will also get several updates on the job market, which has remained strong. The Labor Department will release its June survey on job openings and labor turnover on Tuesday and its closely-watched monthly employment report for July on Friday.

A surge in oil prices throughout the year only worsened the impact from inflation. U.S. crude oil prices are up roughly 25% in 2022 and that has raised gasoline prices in the U.S. to record levels.

In energy trading, benchmark U.S. crude gained 67 cents to $94.56 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 52 cents to $100.55 a barrel.

In currency trading, the U.S. dollar edged down to 130.97 Japanese yen from 131.71 yen. The euro cost $1.0232, down from $1.0259.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Family asks UK's top court to intervene in life support case
Britain’s Supreme Court says it has received an appeal from the family of a brain-damaged 12-year-old boy whose life support treatment had been due to end on Tuesday
8:49AM ( 19 minutes ago )
Mo Ostin, longtime Warner records chairman, dies at 95
Mo Ostin, a self-effacing giant of the music business who with rare integrity presided over Warner Bros
8:31AM ( 36 minutes ago )
Markets dip as Pelosi's Asia trip puts markets on edge
Wall Street was poised to open with losses, following global markets lower as a possible visit by U.S. House Speaker Nancy Pelosi to Taiwan prompted threats from Beijing
8:24AM ( 43 minutes ago )
Associated Press (AP)
Voyage of Ukraine shipment provides test of grain agreement
The first cargo ship to leave Ukraine since Russia invaded its neighbor more than five months ago is sailing off the coast of Bulgaria as it heads toward Istanbul
8:01AM ( 1 hour ago )
Biden: Killing of al-Qaida leader is long-sought 'justice'
President Joe Biden has announced that al-Qaida leader Ayman al-Zawahri was killed in a U.S. drone strike in Kabul
7:56AM ( 1 hour ago )
Progress made in fight against California fire that killed 2
Rainy and cloudy weather has helped firefighters battling a wildfire in Northern California that killed at least two people and burned 100 homes and other buildings
7:43AM ( 1 hour ago )
AP National News
Bad weather in Black Sea slows 1st Ukrainian grain shipment
The first cargo ship to leave Ukraine since Russia invaded its neighbor more than five months ago has run into bad weather in the Black Sea and is set to arrive later than scheduled in Istanbul
5:34AM ( 3 hours ago )
House Republicans who voted to impeach Trump face primaries
Three Republican U.S. House members who voted to impeach Donald Trump over the Jan. 6 insurrection are being challenged in Tuesday’s primary elections by rivals endorsed by the former president
5:17AM ( 3 hours ago )
Pelosi arrives in Malaysia, tensions rise over Taiwan visit
U.S. House Speaker Nancy Pelosi has arrived in Malaysia for the second leg of an Asian tour that is being overshadowed by an expected stop in Taiwan, which would escalate tensions with Beijing
2:41AM ( 6 hours ago )
AP Online National News
More rain, more bodies in flooded Kentucky mountain towns
Another round of rainstorms are hitting flooded Kentucky mountain communities
10:39PM ( 10 hours ago )
Top election official races feature deniers of 2020 results
An Arizona lawmaker endorsed by former President Donald Trump and another lawmaker who also believes the 2020 election should be overturned are among four Republicans vying to be the top election officer in Arizona
7:39PM ( 13 hours ago )
Democrat Sinema's views on economic bill remain shrouded
Democratic Sen. Kyrsten Sinema's views remained a mystery as party leaders eye votes later this week on their emerging economic legislation
7:19PM ( 13 hours ago )
Top General short headlines
UK leadership favorite Truss stumbles over plan to slash pay
British Foreign Secretary Liz Truss has bolstered her front-runner status in the race to succeed Prime Minister Boris Johnson
7:56AM ( 1 hour ago )
Caterpillar posts second-quarter earnings of $1.67 billion.
Caterpillar Inc. on Tuesday reported second-quarter earnings of $1.67 billion
7:08AM ( 2 hours ago )
US ambassador to Japan warns of Chinese economic coercion
The U.S. ambassador in Tokyo says his government is working with Japan and other likeminded countries to counter Chinese attempts to use its economic might to force political change around the world
6:07AM ( 3 hours ago )
AP Business
Stocks slide to start in August after best month since 2020
Stocks are closing slightly lower on Wall Street Monday as investors began another busy week of earnings and economic reports
2:49AM ( 6 hours ago )
Sri Lankans bide time as leaders seek fix for economic woes
Sri Lankans have endured months of fuel and food shortages
1:08AM ( 8 hours ago )
Dem Sen. Sinema's views on economic bill remain shrouded
Democratic Sen. Kyrsten Sinema's views remained a mystery as party leaders eye votes later this week on their emerging economic legislation
6:14PM ( 14 hours ago )
AP Business - Economy
Brittney Griner's trial resumes amid intensified diplomacy
Since Brittney Griner last appeared in her trial for cannabis possession, the question of her fate has expanded from a cramped courtroom on Moscow’s outskirts to the highest level of Russia-U.S. diplomacy
3:44PM ( 17 hours ago )
Griner's trial resumes amid intensified diplomacy
Since Brittney Griner last appeared in her trial for cannabis possession, the question of her fate expanded from a tiny and cramped courtroom on Moscow’s outskirts to the highest level of Russia-US diplomacy
2:33PM ( 18 hours ago )
Griner's trail resumes amid intensified diplomacy
Since Brittney Griner last appeared in her trial for cannabis possession, the question of her fate expanded from a tiny and cramped courtroom on Moscow’s outskirts to the highest level of Russia-US diplomacy
1:21PM ( 19 hours ago )
AP Business - Financial Markets
World one step from `nuclear annihilation,' UN chief warns
U.N. Secretary-General Antonio Guterres is sounding the alarm over the war in Ukraine, nuclear threats in Asia and the Middle East, and other tensions
12:07AM ( 9 hours ago )
UN chief warns world is one step from `nuclear annihilation'
The United Nations chief is warning that “humanity is just one misunderstanding, one miscalculation away from nuclear annihilation.”
8:02PM ( 13 hours ago )
Settlement blocks new federal fracking leases in California
Leasing for new oil and gas drilling on federal land in California's Central Valley is temporarily blocked under a settlement announced Monday by the state attorney general
6:40PM ( 14 hours ago )
AP Business - Industries
Hezbollah airs video of Israeli barges in disputed gas field
Lebanon's Hezbollah is airing drone footage of Israeli gas production barges in a disputed gas field in the Mediterranean Sea
5:03AM ( 2 days ago )
Red Cross struggles to see prison where Ukrainian POWs died
The International Committee of the Red Cross asked for access to a prison where dozens of Ukrainian prisoners of war were killed in a rocket attack
6:26PM ( 2 days ago )
Red Cross is blocked from prison where Ukrainian POWS died
The International Committee of the Red Cross asked for access to a prison where dozens of Ukrainian prisoners of war were killed in a rocket attack
3:12PM ( 2 days ago )
AP Business - Utilities
Family asks UK's top court to intervene in life support case
Britain’s Supreme Court says it has received an appeal from the family of a brain-damaged 12-year-old boy whose life support treatment had been due to end on Tuesday
8:49AM ( 20 minutes ago )
Mo Ostin, longtime Warner records chairman, dies at 95
Mo Ostin, a self-effacing giant of the music business who with rare integrity presided over Warner Bros
8:31AM ( 37 minutes ago )
Same-sex marriage plaintiff Obergefell runs for Ohio office
Jim Obergefell is hoping that Democrats can win back seats at the Ohio Statehouse and beyond this fall with a message grounded in his landmark U.S. Supreme Court fight for same-sex marriage
8:23AM ( 46 minutes ago )
Stephen King to testify for government in books merger trial
Renowned author Stephen King is set to take the stand at a federal antitrust trial in Washington, D
8:22AM ( 46 minutes ago )
Watching al-Qaida chief's 'pattern of life' key to his death
The seeds of the U.S. counterterrorism operation that killed al-Qaida's leader were planted over many months
8:02AM ( 1 hour ago )