{"id":57157,"date":"2023-03-08T21:37:40","date_gmt":"2023-03-08T10:37:40","guid":{"rendered":"https:\/\/icmarkets.eu\/blog\/?p=57157"},"modified":"2025-11-11T19:23:29","modified_gmt":"2025-11-11T08:23:29","slug":"wednesday-8th-march-2023-global-markets-react-to-powells-warning-on-interest-rates-asian-markets-follow-suit","status":"publish","type":"post","link":"https:\/\/icmarkets.eu\/blog\/fundamental-analysis\/wednesday-8th-march-2023-global-markets-react-to-powells-warning-on-interest-rates-asian-markets-follow-suit\/","title":{"rendered":"Wednesday 8th March 2023: Global Markets React to Powell&#8217;s Warning on Interest Rates; Asian Markets Follow Suit"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">Global Markets:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Asian Stock Markets : Nikkei up 0.48%, Shanghai Composite down 0.06%, Hang Seng down 2.59%, ASX down 0.77%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commodities : Gold at $1818.25 (-0.10%), Silver at $20.11 (-0.47%), Brent Oil at $83.01 (-0.34%), WTI Oil at $77.17 (-0.53%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rates : US 10-year yield at 3.989, UK 10-year yield at 3.867, Germany 10-year yield at 2.698<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">News &amp; Data:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(JPY) Current Account 0.22T vs 0.80T expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(JPY) Bank Lending y\/y 3.30% vs 3.20% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Consumer Credit m\/m 14.8B vs 25.2B expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) IBD\/TIPP Economic Optimism 46.9 vs 47.2 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Final Wholesale Inventories m\/m -0.40% vs -0.40% expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(NZD) GDT Price Index -0.70% vs -1.50% previous<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(CHF) Foreign Currency Reserves 771B vs 785B previous<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Markets Update:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Asian stock markets are largely in the red on Wednesday, tracking the negative sentiment from global markets in response to US Federal Reserve Chair Jerome Powell&#8217;s warning on interest rates. Powell testified before the Senate Banking Committee on Tuesday, stating that interest rates are likely to remain higher for longer than previously expected in order to combat inflation.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Australian stock market is taking a significant hit on Wednesday, snapping its four-session winning streak, with declines seen across most sectors, particularly in technology, mining, and energy stocks. Meanwhile, China shares seesawed before ultimately closing marginally lower. Hong Kong&#8217;s Hang Seng Index fell 2.6%, marking its worst day since late January.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, the Japanese stock market is modestly higher on Wednesday, extending its gains from the previous three sessions, supported by gains in technology stocks. Traders are also reacting to domestic data that reveals a record current account deficit in January.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the US, a closely monitored part of the Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, which is regarded as an economic expectations indicator, hit its deepest level since August 1981, currently sitting at -107.3 basis points.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Crude oil prices also took a hit on Tuesday, with renewed uncertainty surrounding energy demand contributing to the decline, while a surging greenback put further pressure on the commodity. In the currency market, the US dollar continued its charge, reaching a three-month high. The dollar index, which measures the US currency against six major rivals, is also on the rise.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Investors are advised to exercise caution as the global economic landscape continues to grapple with inflationary pressures and the threat of rising interest rates.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span style=\"font-weight: 400;\">Upcoming Events:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10:00 AM GMT &#8211; (EUR) ECB President Lagarde Speaks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">01:15 PM GMT &#8211; (USD) ADP Non-Farm Employment Change<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (CAD) BOC Rate Statement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (CAD) Overnight Rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (USD) Fed Chair Powell Testifies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">03:00 PM GMT &#8211; (USD) JOLTS Job Openings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">06:01 PM GMT &#8211; (USD) 10-y Bond Auction<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Global Markets: Asian Stock Markets : Nikkei up 0.48%, Shanghai Composite [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":62731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215],"tags":[],"class_list":["post-57157","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57157","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=57157"}],"version-history":[{"count":2,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57157\/revisions"}],"predecessor-version":[{"id":57162,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57157\/revisions\/57162"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/62731"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=57157"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=57157"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=57157"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}