Taiex to be affected by results of U.S. mid-term elections and American inflation data

Taiex to be affected by results of U.S. mid-term elections and American inflation data

2022-11-06

Taiwan stocks in the second half of this year have been continually sliding, under the influence of the U.S. stock market and geopolitical tensions. This coming week, another two major events will come into play: the U.S. mid-term elections and the release of American inflation data for October. These will impact the U.S. stock market, whose performance in turn will influence the Taiex. Will there be a rebound? Let’s hear from an expert.

Zhang Jie
CMoney
All four major indexes of Wall Street are performing above the 20-day monthly average. South Korea and Japan will accordingly rebound. Taiwan, China and Hong Kong will be fundamentally weak for reasons relating to China’s 20th National Party Congress and geopolitics. There is a chance for the Taiex to follow suit next week, as long as international stock markets stabilize. There’s also an opportunity for the trade volume to increase and boost the index.

Although Taiwanese stocks have a high possibility of bouncing back, unexpected factors from the U.S. may affect them, including the mid-term elections’ results. Furthermore, on Nov. 10, the U.S. will announce the inflation data for October. The degree of inflationary pressure will affect the Fed’s decision on how and when it makes future rate hikes.