Global shares declined Monday after the chairman of the U.S. Federal Reserve indicated high interest rates will continue for some time to curb inflation.
The fall in Asian and European markets followed a drop on Wall Street, where the Dow Jones Industrial Average ended the week down more than 1,000 points.
"The market apparently was looking for something a little more neutral. After all the talk of a 'pause' and 'pivot,' none of which ever made any sense with a Fed that has said several times it will keep hiking rates even if it means some economic pain, we are back to square one with a Fed outlook to keep tightening," said Clifford Bennett, chief economist at ACY Securities.
"The risk-off mood is playing out in the Asia's session today as well, as bearish sentiments follow through with the sell-off in Wall Street to end last week while U.S. futures continue to suggest no reprieve into the new week," said Yeap Jun Rong, market strategist at IG in Singapore. He said the Fed will likely need to keep interest rates high enough to slow the economy "for some time" in order to beat back the high inflation sweeping the country. The Fed has already hiked its key overnight interest rate four times this year in hopes of slowing the worst inflation in decades.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Canadians aiming to make great U.S. Open memories starting MondayLeylah Fernandez and Felix Auger\u002DAliassime are among the Canadians on quest to win a Grand Slam at the U.S. Open on Monday.
Read more »
A 'place of healing and hope': New women’s withdrawal facility opens Monday in east TorontoA “place of healing and hope” is how Gail Teabo describes Michael Garron Hospital’s (MGH) new women's withdrawal facility.
Read more »
Canadians aiming to make great U.S. Open memories starting MondayFor the six Canadians entered in the 2022 U.S. Open, the final Grand Slam tournament of the season is a place where they've created indelible memories, and also suffered crushing disappointments.
Read more »
Indigenous communities in B.C. join global movement to repatriate lost artifactsThe Indigenous peoples of the Northwest Coast are reclaiming part of their heritage
Read more »