The US Federal Reserve is ready to raise rates by 75 bps as soon as this week. Stock indices reached the bear market border

Amid the Fed’s more aggressive policy, there are also growing expectations that the Central Bank may accelerate the recession, which will lead to an even greater decline in consumer incomes. This would hurt many sectors of the economy.

The US lawmakers are pushing for new government powers to block Americans from investing in China.

Oil prices rose on Monday as a shortage of global inventories outweighed concerns that demand will be pressured by the outbreak of COVID-19 cases in Beijing and further interest rate hikes. Oil supplies are now extremely limited as OPEC, and its allies are unable to fully meet promised production increases due to capacity shortages at many producers, sanctions against Russia, and the turmoil in Libya that has led to production cuts.

The yellow metal’s rise to five-week highs on Friday reversed sharply on Monday amid investors’ flight from risk ahead of the Federal Reserve’s third expected rate hike. The pressure on the yellow metal was amplified by a rally in US benchmark bond yields. Gold is inverse to government bond yields, so an aggressive Federal Reserve policy negatively affects gold and silver prices.

Asian markets also fell sharply yesterday after Wall Street hit bear market territory and bond yields rose to a two-decade high on fears that aggressive interest rate hikes in the US will push the world’s largest economy into recession. Japan’s Nikkei 225 (JP225) decreased by 3.01% yesterday, Hong Kong’s Hang Seng (HK50) fell by 3.39% yesterday, and Australia’s S&P/ASX 200 (AU200) was down by 1.25%.

The Japanese government and the Central Bank issued a rare joint statement expressing concern about the yen’s sharp decline, and some investors fear either currency intervention or indecision to hold bond yields.

According to the NAB, the Australian economy maintained its momentum in the second quarter, and most businesses are in a strong position despite high inflation. But analysts say rising interest rates and global growth risks have yet to have a significant impact on Australia’s economic trajectory.

South Korea’s foreign minister said yesterday that any provocation by North Korea, including a nuclear test, would be met with a united and firm response.