Asian Stock Market: Diverges with Wall Street on overnight risk-off, Fed Powell in focus

FXStreet · 22 Jun 2022 198 Views
  • Asian equities have tumbled as risk-off soars ahead of Fed Powell’s testimony.
  • Household spending is likely to disrupt quantity-wise as a higher inflation rate is depreciating their paychecks.
  • Oil prices have tumbled to near $105.00 as the odds of a slump in the global demand accelerate.

Markets in the Asian domain have witnessed a steep fall as the sentiment turned risk-off after the closing bell on Wall Street. The US dollar index (DXY) has been strengthened after stabilizing above Tuesday’s high at 104.60 and is now aiming to recapture Monday’s high at 104.82. The expectations of a hawkish commentary from Federal Reserve (Fed) chair Jerome Powell in his testimony have underpinned the negative market sentiment.

At the press time, Japan’s Nikkei225 dropped 0.10%, China A50 eased 0.46%, Hang Seng surrendered more than 1%, and Nifty50 tumbled 0.80%.

Taking into account, the runaway inflation and an extremely tight labor market in the US economy, Fed chair Jerome Powell is expected to sound extremely hawkish in his testimony. Household spending is likely to disrupt quantity-wise as soaring price pressures are depreciating their paychecks. No doubt, Fed Powell could dictate a continuation of a June monetary policy announcement for July. This may accelerate the recession fears but the Fed is left with no other option than to paddle the interest rates.

On the oil front, advancing odds of a slump in the global demand are forcing the market participants to dump fossil fuels. The oil prices have tumbled to near $105.00 and are expected to add losses are more interest rate hikes by various central banks are on their way.

Nikkei 225

Today last price 26500.84
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 26500.84
Daily SMA20 27073.35
Daily SMA50 26856.9
Daily SMA100 26882.76
Daily SMA200 27841.62
Previous Daily High 26529.35
Previous Daily Low 26049.68
Previous Weekly High 27263.29
Previous Weekly Low 25595.6
Previous Monthly High 27479.24
Previous Monthly Low 25531.19
Daily Fibonacci 38.2% 26346.12
Daily Fibonacci 61.8% 26232.91
Daily Pivot Point S1 26190.56
Daily Pivot Point S2 25880.29
Daily Pivot Point S3 25710.89
Daily Pivot Point R1 26670.23
Daily Pivot Point R2 26839.63
Daily Pivot Point R3 27149.9