The Financial Supervisory Commission has announced the cancellation of short selling restrictions starting on the 26th, which has caused many investors to worry about possible market volatility around the Dragon Boat Festival.

While the Commission lifts the short selling ban imposed in response to Trump's tariff policies, Trump has unexpectedly announced a 50% tariff on the EU in June, reigniting tensions in the trade war. Following an initial 400-point drop in Taiwan's index on the 23rd, investors are on high alert.

The Commission's three protective measures will also be adjusted, including the percentage of daily short sale borrowing and minimum margin requirements.

However, some investors feel that the timing of these adjustments could fuel the bravado of short sellers, leading to fears that further restrictions may arise right after the market opens. Brokerage officials acknowledge that the lifting of short selling restrictions will certainly impact the market today, especially with only four trading days remaining before the upcoming Dragon Boat Festival, increasing market volatility.

Additionally, the New Taiwan Dollar faces challenges in the foreign exchange market, having shown continued appreciation since an initial rise in early May.