Nancy Pelosi's upcoming visit to Taiwan crashes US and Chinese stock markets

15:59 02 August Kyiv, Ukraine

The aggravation of relations between the US and China due to the visit of Nancy Pelosi to Taiwan created excessive nervousness on the trading floors: the main US indices closed in the red on Monday trading results, and Chinese indices closed in the red on Tuesday trading results.

The index of 300 largest Chinese companies (CSI 300) on the basis of trading on Tuesday fell by 1.95%, from 4144.38 to 4107.02 points. The Shanghai Composite lost 2.26% during the day, dropping from 3231.26 to 3186.27 points, and finally, the Shenzhen Stock Exchange Index (SZSE Component) fell by 2.37%, from 12260.45 to 12120.02 points. A similar trend was demonstrated by the Hong Kong Hang Seng index, which fell by 2.36% from 20165.84 to 19689.21 points.

U.S. stock markets closed in the red for the first time in days on Monday.. The Dow Jones lost 0.14% to 32,798.40 from 32,846.45 the previous day. Similar dynamics was recorded in the S & P 500 (-0.28%, up to 4118.6 points) and NASDAQ (-0.06%, up to 12940.78 points).

It is worth noting that the US stock market was growing all week before, and on a relatively negative news background: the US Federal Reserve raised the rate again due to continued high inflation rates, and US GDP showed negative dynamics in the second quarter, which indicates the onset of a technical recession. Despite the negative, the markets were in the green zone for several days in a row.

Nancy Pelosi announced her intention to visit Taiwan as part of her Asian tour. Official Beijing reacted very painfully to this decision and even put the armed forces on high alert. Military equipment appeared on the beaches of the Chinese provinces closest to Taiwan, and the United States also sent its aircraft carriers towards Taiwan to increase its military presence in the region. The US does not publicly recognize Taiwan's independence, yet the White House sees no problem with Pelosi's visit to Taiwan and insists that the Chinese authorities are deliberately exacerbating the situation.