The equity market was once again 'caught' by investors' concerns about inflation as well as rising interest rates for the US dollar and Treasury yields peaked at the close last Friday.
Looking at the situation at the close, the greenback climbed to a 32-year high against the Yen and news of the resignation of the United Kingdom (UK) Finance Minister Kwasi Kwarteng sent the Pound down.
The 10-year Treasury note yield rose 7.1 basis points to 4.025% from 3.954%, the highest level in 14 years after the United States (US) retail sales data decreased 0.4%.
This matter indirectly weakens the confidence of investors with the high inflation factor suppressing demand and the Federal Reserve (Fed) will definitely continue the implementation of its aggressive rate hikes.
The streak saw the Dow Jones Industrials down 1.3% at 29,634.8 while the S&P 500 lost 2.4% at 3,583.1 and the Nasdaq Composite fell 3.1% at 10,321.4.
Europe's STOXX 600 index rose 0.56% and MSCI's worldwide gauge lost 1.30%.
The opening of the Asian session this morning saw Japan's Nikkei 225 fall 1.53%, Topix down 1.07%, South Korea's Kospi down 1.35%, Kosdaq down 1.33% while Australia's S&P/ASX 200 plunged 1.59% and MSCI Asia Pacific lost 0.6%.
Meanwhile, analysts at Edward Jones explained that the equity rally following the release of US inflation data slowed with consumer sentiment surveys reporting inflation rates continued to rise on Friday.
Based on that factor, investors are again worried about the risk of a recession as a result of the Fed's aggressive actions in controlling inflation, in addition to other factors pressuring equities to fall back.
On the opposite side, the corporate earnings reporting season has already started with JPMorgan Chase & Co, Morgan Stanley, Citigroup Inc and Wells Fargo & Co posting declines.
