Falling global stock markets, stronger dollar and weaker RMB

According to the Central News Agency on Monday, as a result of most Central Banks raising their interest rates and concerns in global economic growth, global markets started to fall and the dollar grew in value. Meanwhile, problems with China’s housing market were brought to light by the Communist Party’s moderate relaxation policy. Later this week, a large number of decision-makers will attend an Economic Summit in Jackson Hole. The chairman of the U.S. Federal Reserve, Jerome Powell, will be the main speaker but it is unlikely he will be able to satisfy investors’ expectations for a “dovish turn” in policy. There is still substantial work to be done to address inflation, according to analysts at NatWestMarkets, and there has been no explicit promise for a rate hike in September. However, according to a Reuter’s survey of economists, with the risk leaning towards a higher peak, the Fed will likely raise interest rates by 50 basis points in September. On Monday, the STOXX index of the 600 largest European equities lost 0.97%, with key regional markets also declining as a result of investors’ concerns over hawkish signals from policymakers at the European Central Bank. The Chinese Communist Party is an exception to this tightening trend. On Monday, CCP Central Bank lowered several key lending rates by 5 to 15 basis points to assist a faltering economy and a fizzled property market. The yuan hit a 23-month low as jitters about Communist China’s economy put pressure on stock markets in the Asia region.