Stocks slump, dollar soars after hawkish Powell comments

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Short-term US and German bond yields at their highest since 2008 as markets fret over aggressive monetary tightening

Stocks fell, the dollar hit multi-month highs and US and German short-term bond yields were at their highest levels since at least 2008 as Federal Reserve chair Jerome Powell put big rate hikes back on the table.

“There’s a lot of mixed signals out there,” said Eren Osman, MD of wealth management at Arbuthnot Latham, adding he was reluctant to take “large underweight or overweight” positions in any major asset class. Fuelling inflation scares was news that US employers added 500,000 new workers in January, while economists surveyed by Reuters expect the official non-farm payrolls report on Friday to show another 203,000 positions were added in February.

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