Powell is "cold"! Japanese and South Korean stock markets fell 2.5%, U.S. stock futures continued to decline, and 2-year U.S. bond yields hit a 15-year high

time:2022-12-09 07:00:29source:chakarski.com author:Technology stocks
Powell is "cold"! Japanese and South Korean stock markets fell 2.5%, U.S. stock futures continued to decline, and 2-year U.S. bond yields hit a 15-year high

U.S. stocks fell sharply after Powell's ultra-hawkish speech last Friday. On Monday, the "cold" spread to Asian stocks, and Japanese and South Korean stocks fell sharply.

Japan and South Korea stock markets fell sharply, and U.S. stock futures continued to decline

At the beginning of the session, the Nikkei 225 Index and South Korea's Seoul Composite Index both fell 2.5%, the MSCI Asia Pacific Index fell more than 1%, and Australia's S&P/ASX 200 Index fell expanded to 2%. As of 10:43, the Nikkei 225 fell 2.7%, South Korea's Seoul Composite fell 2.13%, and Australia's S&P/ASX 200 fell 2.1%. U.S. stock futures continued to decline. Nasdaq futures fell as much as 1.6%, while S&P 500 futures fell as much as 1.2%.

U.S. Treasuries were sold off, and U.S. Treasury yields soared across the board

The 2-year U.S. Treasury yield rose 6.5 basis points to 3.458%, a new high since November 2007; the 10-year U.S. Treasury yield rose 6.7 basis points, re-stand at 3.1%; 5-year U.S. Treasury yields rose 8 basis points. The inversion of the 2-year and 10-year U.S. Treasury yield curves intensified, underscoring expectations that the Federal Reserve's tightening of monetary policy will lead to a recession. Federal Reserve Chairman Jerome Powell's speech at the central bank's annual meeting in Jackson Hole last Friday in just 8 minutes caused the U.S. stock market to stage a "long-lost" plunge. At the annual meeting, Powell warned that he will continue to raise interest rates to fight inflation, "historical experience strongly warns us not to ease policy prematurely, and may implement a growth-restrictive monetary policy for a period of time." He also warned that it could cause economic pain for households and businesses. The comments contrasted with market bets that the Federal Reserve will lower borrowing costs next year as U.S. economic growth slows, further undermining the rally in global stocks from their bear market lows in mid-June. "[Powell hinted] once they get one last rate hike, they're going to be there for a while, and the market is struggling to digest that," said Liz Ann Sonders, chief investment strategist at wealth management group Charles Schwab & Co. At a new one-month high, the offshore renminbi against the dollar once fell below 6.93 Powell's signal to continue raising interest rates, pushing the dollar to a more than one-month high. The yen, sterling and offshore yuan are all under pressure as the dollar surges. The offshore yuan fell below 6.93 against the dollar at one point. It is currently reported at 6.9250, down more than 300 points within the day. The onshore yuan fell below 6.90 against the U.S. dollar for the first time in two years, down more than 300 points from last Friday's night close. This article is from Wall Street News, welcome to download the APP to see more
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