Asian shares Slide Due to US Investment Curbs on China, Euro Gain Fades
Asian shares slid on Tuesday amid concerns about U.S. investment curbs on China, while a run-up in the euro faded as investors wait for Germany to sort out the formation of its new government. The Nikkei fell 1.3%, shares of Japanese trading houses surged, and Alibaba declined 3.2% after its U.S.-listed shares tumbled overnight. Investors are cautious ahead of results from Nvidia, where options point to a share price move of about 8%. Europe is set to open flat, with pan-European STOXX 50 futures little changed.
- The market reaction to the U.S. investment curbs on China highlights the interconnectedness of global economies and the potential risks of protectionism.
- Will these curbs have a lasting impact on the global trade landscape, or will they be subject to revision or reversal as investors and policymakers reassess the implications?