US-Sino tensions back in play amid Taiwan visit, US’ delisting of Chinese telecom companies
The diplomatic tensions between the US and China are likely to intensify further, as the US ambassador to the United Nations (UN) Kelly Craft is set to visit Taiwan next week to meet with senior Taiwanese counterparts.
The ties already remain strained, in the wake of the US stock indexes delisting China’s telecom companies, in response to their alleged links with the Chinese military.
The NYSE on Wednesday said it will delist three Chinese telecom companies, including China Mobile Ltd, China Telecom Corp Ltd and China Unicom Hong Kong Ltd.
Meanwhile, the MSCI, the global index publisher, said Friday that it will delist these companies from its indexes as of the close of business on January 8.
Market implications
At the moment, investors are paying a little heed to the US-China woes, as the risk sentiment remains buoyed by higher US fiscal stimulus expectations after the Blue sweep of the Senate.
The S&P 500 futures rise 0.40% alongside a 2% rally in the Treasury yields, driving the US dollar northwards.
However, the Chinese proxy, AUD/USD remains pressured around 0.7755 amid the dollar’s strength.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
