Taiwan’s stock market has dropped about 320 points, or 1.8%, in three consecutive days. Because it is below the 17,600-point threshold, it is most likely to open under pressure on Wednesdays.
Oil and technology are expected to lead the way lower, as interest rates and fears over the COVID-19 dampen the global outlook for Asian markets. The European and American stock markets were both down, and Asian markets were expected to follow suit.
Due to losses in financial stocks, technology stocks, and cement companies, the TSE finished marginally lower on Tuesday.
The index dropped 168.23 points, or 0.95 %, to 17,599.37 after trading between 17,566.99 and 17,754.38.
Cathay Financial fell 0.82 % among the active. Mega Financial was down 0.28 %, CTBC Financial was down 1.16 %, Fubon Financial was down 1.06 %, First Financial was down 0.83%, E Sun Financial was down 0.36 %, Taiwan Semiconductor Manufacturing Company was down 0.33 %, United Microelectronics Corporation was down 0.64 %, Largan Precision was up 2.76 %, MediaTek was down 0.47 %, Delta Electronics was down 0.37 %, Formosa Plastic gained 0.49 %, Asia Cement gained 0.12%, Taiwan Cement lost 0.21 %, and Hon Hai Precision and Catcher Technology remained constant.
As the major averages spent the majority of the day in the red, Wall Street’s leads are negative as they near record lows.
The Dow Jones Industrial Average fell 106.77 points, or 0.30 %, to 35,544.18, while the NASDAQ down 175.64 points, or 1.14 %, to 15,237.64, and the Standard & Poor 500 fell 34.88 points, or 0.75 %, to 4,634.09.
As the Federal Reserve’s two-day meeting got underway, concerns over the prospects for monetary policy continued to weigh on the markets. With inflation remaining high, the Fed is largely expected to speed up the pace at which it reduces bond purchases.
The Labor Department released a report showing producer prices climbed more than expected in November, potentially contributing to concerns about monetary policy.
The Omicron variation, which is spreading quicker than the previous strain, has created some selling pressure in the market after the World Health Organization issued a warning about the new coronavirus.
Crude oil prices fell on Tuesday as investors worried about the outlook for energy demand as a result of new limitations imposed in the wake of an increase in new cases of the Omicron strain of the coronavirus. In the month of January, West Texas Intermediate Crude oil futures dropped 0.8 % or $0.56, to $70.73 a barrel.