Global stocks rose on Wednesday as investors worried about tensions between the United States and China decreased After the Speaker’s trip, Nancy Pelosito Taiwan.
European markets closed higherwith Paris s Frankfurt climb around one percent and the FTSE100 Who climb London a 0.5 percent.
Indications Wall Street also rose in the middle of the day After positive economic data and another round of corporate earnings that included good results from Starbucks and CVS Health.
Industry average Dow Jones Increased more than 300 points to a 1.2 percent. The Standard & Poor’s 500 Widely also obtained 1.4 percentwhile the composite index Nasdaq Technology-rich leaped a 2.3 percent.
Indicator The ISM showed non-manufacturing purchasing managers that service activity growth accelerated in July for the first time in four months.
in the meantime, Oil prices fell after the OPEC + oil agreement, led by Saudi Arabia and Russia, on a slight increase in production Official data showed that US crude stocks rose surprisingly last week.
OPEC + increase decision Production of 100,000 barrels per day for September disappoints US President Joe Bidenwho traveled to Saudi Arabia last month to seek help in curbing rising energy prices, according to analysts.
But analyst Edward Gardner of Capital Economics cautioned against this “As it has become increasingly evident lately, an increase in quotas does not equal an increase in production.”
Production is supposed to return to pre-pandemic levelsbut only on paper, as some members of the 23-nation group struggled to meet their quotas.
Major contracts are down more than two percentwith the Brentinternational standard, back off under $100.
“Roller coaster ride”
The Investors also watched with concern the reaction to Pelosi’s visit to Taiwan.which China considers part of its territory.
“What China didn’t do was apparently the focal point”Patrick O’Hare said, in Briefing.com.
“China has not taken any action that necessitated a US military response. This understanding brought relief to investors as House Speaker Pelosi took refuge in South Korea.”He said.
Welcomed the biggest trip an American politician has made to Taiwan in 25 years Condemn Beijing, which promised “punishment.”
“This week was already shaping up to be another rollercoaster ride, and Pelosi’s trip has added another layer of event risk to the markets.”said Craig Erlam, an analyst at OANDA.
The news of the visit sent chills on Tuesday in parks already worried about the war in UkraineHigh inflation, high interest rates and slow economic growth.
however, Most stock markets rose on Wednesday.
“There was a lot of fear, but there was no physical effect”he said to France Press agency Naim Aslam, analyst at AvaTrade, when asked about the impact of Pelosi’s visit on the markets.
Investors are also watching Central bank measures to control inflation.
expected to be The Bank of England is following other central banks with sharp interest rate hikes To deal with rising inflation on Thursday.
The increase of half a percentage point would be the largest in more than a quarter century.
(With information from AFP)