Asian stocks tumbled more than 2% intraday on Monday (29th), the biggest drop in more than two months, US stocks and European stock futures both fell at least 1.5%, and US 2-year bond yields also hit a 15-year high , highlighting the US Federal Reserve (Fed) Chairman Powell’s hawkishness, triggering a heightened sense of risk aversion in the global market.
The MSCI Asia-Pacific index tumbled 2.3 percent in intraday trading on Monday, its biggest drop since June 13. Stocks in Japan, South Korea and Australia all fell more than 2%.US stocksS&P 500 IndexFutures fell 1.1%, while Euro Stoxx 50 futures fell 1.7%.
U.S. 2-year Treasury yields rose as much as 6 basis points to 3.46 percent, the highest since November 2007.10-year Treasury yieldIt rose 6 basis points to 3.10%.
In a speech at the annual meeting of global central banks in Jackson Hole on Friday, Powell said rate hikes would continue and that they would remain high for some time. His remarks can be seen as the latest rate guidance.
“Returning to price stability may require a restrictive policy stance for some time,” Ball said. “The historical record has given strong warnings regarding premature easing.”
Jeffrey Roach, chief economist at LPL Financial, said: “In a short 1,300-word speech, Ball mentioned ‘price stability’ nine times, and he believed that a strong labor market was built on the basis of price stability. Ball made his position clear. , fighting inflation is now more important than economic growth.”
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said, “The focus of Powell’s speech was clear: inflation and price stability. He has been very clear that the Fed’s main goal is to keep inflation down, even if that means households and businesses in this You have to suffer in the process.”
Gary Dugan, chief executive of the Global CIO Office in Singapore, believes that whether Asia will face greater losses depends on the direction of the dollar. “Our quantitative model is sending a near-term sell signal to the stock market.”
