Markets in red today with 3 risks of instability

Markets in the red, with Asian shares losing after strong economic data and rising commodity prices spurred speculation that major central banks will keep interest rates higher for a longer period.
Benchmarks in South Korea and Hong Kong led the region's decline.
Mainland Chinese stocks began falling again after a report showing expansion in Caixin Purchasing Managers' Indexes failed to provide a fresh catalyst.
US yields hovered near four-month highs.
Also of note was a strong earthquake in Taiwan that raised concerns about possible disruptions in the vital chip manufacturing sector.
Declines on Wall Street also hit sentiment, as last week's stubborn inflation data and Monday's strong economic data pushed Treasury yields higher and reduced the likelihood that the U.S.
Federal Reserve will cut interest rates to June.
In the background, attention remains at the highest levels towards the two conflicts, the Ukrainian one and the other in the Middle East, which are becoming more complicated and threatening political and economic stability.
In summary, 3 reasons for alert are shaking the stock markets today.
1.
Growing risks in the Middle East President Joe Biden said Israel had not done enough to protect civilians after the deaths of seven aid workers, in one of his harshest criticisms of the country's conduct in the months since the launch of the military campaign against Hamas in Gaza.
Israel's military offensive in the Gaza Strip has destroyed an estimated $18.5 billion in infrastructure, according to a new report outlining the devastating economic impact of Hamas' war.
Oil held onto its gains, with Brent crude trading near $90 a barrel after closing Tuesday at its highest level since October.
The risk now is a dangerous escalation in the region with the promise of revenge from Iran.
read also Middle East Alarm.
And oil is running high 2.
Electric vehicle crisis? Tesla Drop Tesla reported a decline in quarterly deliveries for the first time in nearly four years and missed Wall Street estimates, a performance that some described as dismal, as price cuts failed to spur demand in a highly competitive market.
Shares of the Elon Musk-led company fell 5.2% to $166.08 on Tuesday afternoon, losing about $30 billion in market value.
The stock has lost about 33% this year.
The electric vehicle maker has been slow to refresh its models as high interest rates have sapped consumption for big-ticket items and rivals in China, the world's largest car market, are rolling out cheaper models.
Tesla's deliveries fell 8.5% in the first quarter to 386,810 vehicles from a year ago, and the company produced 433,371 vehicles during the period.
Of note, BYD fell 1.5% after the Chinese electric vehicle maker said its first-quarter sales plunged 43% quarter-on-quarter.
3.
Fed cuts puzzle Two Federal Reserve officials who will vote on monetary policy decisions this year said they still expect the U.S.
central bank to cut rates three times in 2024, although they are in no rush to start reducing borrowing costs.
financing.
Indeed, hopes of an imminent decrease in the cost of borrowing are starting to fade in the market.
Bond traders are piling into bearish bets, fueling a sell-off in benchmark Treasuries, as new evidence of robust U.S.
growth triggers a recalibration of expectations for the Fed's interest rate policy.
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