Taiwan Vote Is Key Test for Markets to Navigate US-China Strains
- Impact most likely slow burn rather than immediate volatility
- Besides dollar, gold, safer developed-market bonds also a help
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Taiwan’s election on Saturday will offer the first major geopolitical test for global investors in a year that promises other challenges from a Federal Reserve policy pivot to the US presidential race.
The impact on world markets will most likely be a slow burn rather than immediate volatility, say China watchers, with much hinging on the victors’ proclamations and Beijing’s corresponding response. Campaign rhetoric in the run-up to the US election in November may also play a role.