Global markets retreat after Fed signals rate hikes are coming soon
Asian markets tumbled. Japan’s Nikkei (N225) slid 3.1% to close at its lowest level in 14 months and South Korea’s Kospi (KOSPI) slipped into a bear market after declining 3.5%. China’s Shanghai Composite Index (SHCOMP) fell 1.8% to its lowest level since July, and Hong Kong’s Hang Seng (HSI) shed 2%.Europe’s Stoxx 600, which includes companies from 17 countries, dropped 0.2% in early trading. Most major European indexes lost ground, but the United Kingdom’s FTSE 100 (UKX) bucked the trend, rising 0.4%.The declines come after Federal Reserve Chairman Jerome Powell signaled that the Fed is preparing to raise interest rates at its meeting in March. Powell also indicated during a press conference that rates could climb more quickly than many analysts had anticipated.
The Fed boss said that the US economy and labor market are strong enough to tolerate higher rates, which are needed to reduce inflation. Analysts at BNP Paribas, who had…
