Hong Kong: Due to inflation concerns and the spread of delta virus mutation fuel concerns about global recovery, Asian markets fell after Wall Street fell sharply on Monday, and oil prices also fell after major producers reached agreements to increase production.
As China tightens controls, the United States has warned companies of “increasing risks” in operating in Hong Kong, triggering concerns about its future as a financial center. Hong Kong has been hit hardest.
With the global launch of vaccines and the relaxation of lockdowns by some governments, the stock market performed healthy in the first half of this year, with many stocks hitting all-time highs or multi-year highs, as traders bet that there will be a strong rebound after the crash caused by the pandemic last year.
However, as leaders of several countries-especially those with slow vaccination plans-re-implement lockdowns and other containment measures, the terrible spread of the highly contagious Delta variant has caused problems for work.
Even in areas of the world where most people have been stabbed and reopened (such as England), people are increasingly worried about a surge in new cases.
This raises concerns that the expected recovery will not be as strong as initially hoped.
At the same time, the surge in inflation has renewed speculation that the Fed and other central banks may be forced to end their ultra-loose monetary policy and raise interest rates earlier than expected.
Treasury Secretary Janet Yellen last Thursday warned prices rises will continue to be strong for the next few months but that they would eventually slow down.
“Markets are… dealing with a burst of inflation pressure that hasn’t been observed for quite some time,” said Michael Hood, at JP Morgan Asset Management.
He said there was “uncertainty about whether it will be temporary or lasting, and a Federal Reserve that is viewing all this through the lens of an untested and somewhat vague new framework, which they’ve not been able to communicate very clearly about”.
