Live News Update: Asian shares fall as gloom persists after central bankers meeting

Live News Update: Asian shares fall as gloom persists after central bankers meeting

Wall Street suffered three days of weakness in global shares after central bankers reaffirmed their commitment to curbing inflation © Bryan R Smith/Reuters

US and European stocks fell for a third day in a row on Tuesday, as rhetoric from last week’s economic conference in Jackson Hole fueled expectations of higher interest rates.

The broad S&P 500 was down 1.4 percent by mid-afternoon in New York, while the tech-heavy Nasdaq Composite was down 1.6 percent.

In Europe, the regional Stoxx 600 gauge lost 0.7 percent, while Germany’s Dax rose 0.5 percent, paring earlier losses. London’s FTSE 100 fell 0.9 percent after a day’s rest.

The moves followed two days of weakness in global stocks after central bankers reaffirmed their commitment to curbing inflation at their annual summit in Jackson Hole, Wyoming, even as the prospect of tighter monetary policy threatens to trigger a prolonged economic slowdown.

In a speech on Friday, Federal Reserve Chairman Jay Powell said the US central bank “must stick with it until the job is done”and that a reduction in inflation would probably result in lower economic growth in the “sustainable period”.

Signaling expectations of further stock market turmoil, the Vix volatility index – known as Wall Street’s “fear gauge” – registered a reading of 27.69 on Tuesday, its highest level since mid-July.

The index could rise further, warned Nicholas Colas, co-founder of DataTrek Research. “US stocks are not reflecting enough fear given the current macro and micro uncertainties,” he said.

Read more about daily market movements here.



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