(CercleFinance.com) – The New York Stock Exchange should open in the red on Tuesday morning, investors no longer displaying too much of a taste for risk in the face of the reappearance of geopolitical risks.
Futures contracts on New York indices signal for the time being an opening on a particularly cautious note for Wall Street, which could lose between 0.6% and 1% at the start of the session.
Investors watch with a worried eye the rise of geopolitical tensions between China and the United States, exacerbated by the planned visit of Nancy Pelosi to Taiwan, which leads them to stand on the reserve.
Beijing sent a message to the American authorities overnight to warn them that the People’s Army would not stand idly by if the Speaker of the House of Representatives were to visit the island state.
Some strategists fear that China could send fighter jets to Taipei, forcing Taiwan to make the decision whether or not to shoot them down.
The CBOE’s VIX volatility index, also nicknamed Wall Street’s ‘fear index’, thus resumed 5.5% to 24.1 points.
The price of gold, a traditional safe haven, rose 0.7% to 1,800 dollars an ounce, while the yield on 10-year Treasury bonds fell to 2.5%, testifying to a search for security.
Added to these fears is the need to take a break after the gains of the past few weeks, which saw the S&P 500 index climb more than 9% in July, thanks in particular to results that were less bad than expected.
“However, we recommend that investors not jump to conclusions and draw too many conclusions based on the turnaround in July,” warns Mark Haefele, chief investment officer of UBS’s wealth management arm.
‘We believe that there is still far too much uncertainty and that the markets could still show heaviness for several months’, warns the analyst.
The agenda promises to be completely deserted on the side of economic statistics on Tuesday, but will be marked by the quarterly publications of several leading companies.
Caterpillar thus unveiled this morning an adjusted EPS (excluding restructuring costs) of 3.18 dollars for the second quarter of 2022, compared to 2.60 dollars over the same period in 2021.
Uber jumped more than 14% in pre-market quotations following the publication of its accounts, which came out above market expectations.
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