rced investors to remain on the sidelines. Asian equities have witnessed a sell-off amid the risk-off impulse, citing gloomy growthand signs of recession situation in the US economy responsible, apart from the Fed’s tight policy.
At the press time, Japan’s Nikkei225 dropped 0.48%, ChinaA50 tumbled 1.10%, Hang Seng dived 1.26% and Nifty50 declined 0.62%. Accelerating odds of the Bank of Japan ’s intervention in the currency markets is hurting the sentiment of Japan’s investors. Chatters over intervention are bolstering the fact that the Japanese yen could weaken further. This may hurt the firms which are highly dependent on other countries for raw materials.
Indian indices have taken a hit after a jump in inflationary pressures. Headline inflation for September has landed higher at 7.4% vs. the prior release of 7.0% while the core CPI has escalated to 6.1%. This will weigh pressure on the Reserve Bank of India to hike interestMeanwhile, the US dollar index has continued with its lackluster performance ahead of the US CPI data. As per the consensus, the headline inflation data will decline to 8.
On the oil front, oil prices are sideways after dropping to near $85.00. Weakness is expected to persist in the oil prices as fears of a recession situation in the US economy have heightened. Also, commentary from US President Joe Biden that recession will be slight if US encounters don’t bar the recession fears.
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Source: FXStreetNews - 🏆 14. / 72 Read more »