Hu Xijin, a commentator on the highly-influential Chinese language state media, World Instances, tweeted out on Tuesday, “based mostly on what I do know, in response to Pelosi’s potential go to to Taiwan, Beijing has formulated a collection of countermeasures, together with navy actions.”
This comes as diplomatic tensions mount forward of an anticipated Taiwan go to by US Home of Representatives Speaker Nancy Pelosi this Tuesday.
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The market temper stays threat averse, as traders chorus from putting bets on high-beta belongings amid escalating tensions between China and Taiwan over the deliberate go to by Pelosi to Taipei. The US S&P 500 futures are down 0.52% on the day whereas AUD/USD is going through a double-whammy from a much less hawkish RBA price hike and China considerations, falling in direction of 0.6950.