Possible scenario
Diplomatic De-Escalation
+0.4%
The United States, China, Taiwan, and Japan use diplomatic channels to prevent further incidents east of Taiwan. Beijing does not concede its claims, but it reduces the tempo of patrols enough to lower immediate market anxiety.
What it moves
- Technology+0.9%
- Industrials−0.4%
- Market volatility
- Riskier companies' borrowing costs
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