Global stocks hit 1-month low

Fed Chairman Jerome Powell's Friday speech signaling that interest rates will be raised for a long time caused a decline in stocks and stock futures, while the 2-year US bond yield rose to its highest level since November 2007. While stock markets in Asia fell more than 2 percent led by technology stocks, the global stock index fell to its lowest level in 1 month. The Bloomberg Dollar Spot index approached the record level seen last month as investors turned to safe havens due to increasing volatility. While bond markets were sold off, the US 2-year bond yield rose to 3.47 percent. Powell stated in his speech at the Jackson Hole Symposium last week that they would continue restrictive monetary policy for a while longer due to high inflation. Powell also warned that this situation could be 'painful' for households and businesses. A pessimistic atmosphere prevails in the global economy due to concerns about high inflation, the Russia-Ukraine war and a slowdown in global growth. S&P 500 index futures fell 0.8 percent and Nasdaq futures fell 1.2 percent. Japan's Topix index fell 1.6 percent and South Korea's Kospi fell 2 percent. China's Shanghai Stock Exchange fell 0.3 percent and Hong Kong's Hang Seng fell 0.8 percent. The Bloomberg Dollar Spot Index rose 0.6 percent, while the euro fell 0.5 percent against the dollar and is hovering around 0.9920. The Japanese yen and offshore yuan are falling against the dollar. Gold prices also fell 0.8 percent, while oil rose due to supply risks. Bitcoin fell below $20,000.