This is the Latest Development of Risky Assets One Day After FOMC & BOE


 Global equity markets are still moving weakly with US Treasury yields rising after a 75 basis point increase by the Federal Reserve (Fed).

It is understood that investors are now digesting Fed President Jerome Powell's hawkish comments on the prospect of central bank tightening for the final meeting next month which shows no signs of slowing.

Great Hill Capital Chairman Thomas Hayes comments, for the 8 months of this year the Fed has increased by 400 basis points which is the most tightening policy increase in history and it upsets investors.

In addition, the Bank of England (BOE) late yesterday's session also tightened its monetary policy with an increase of 75 basis points, which is the largest record since 1989.

As a result, the MSCI index of global equities that tracks 50 other country stocks fell nearly 2% while European shares fell around 1% after the BOE meeting.

The Wall Street market was no different as the Dow Jones Industrial fell 0.46% to 32,001.25 while the S&P 500 lost 1.06% to 3,719.89 and the Nasdaq Composite plunged 1.73% to 10,342.94.

In Asia this morning, Japan's Nikkei 225 fell 1% while Topix fell 0.8% while South Korea's Kospi opened weak and Kosdaq fell 0.36%.

Australia's S&P/ASX 200 index plunged 0.23% while MSCI's broadest gauge of Asia Pacific shares outside Japan was flat.

In the meantime, Treasury yields continued to rise with the 2-year note rising 4.7117% after the FOMC and BOE while the 10-year note rose 4.149%.

The currency summary showed the dollar continued to strengthen 1.46% since Powell's comments while the Euro was down 0.7% at $0.9748 after the BOE meeting.