Weekly Market Update - 29 August 2022

Rocky Open

US equity futures slid Monday and stocks in Asia are set for a weak open after Powell’s hawkish rhetoric sparked sharp drops on Wall Street and pushed up the dollar. Equity futures shed nearly 2% for Japan and almost 1.5% for Australia. Bitcoin nursed losses incurred since Powell’s comments, flirting with a sustained break below the $20,000 mark.

Source: Bloomberg

Stockpiling Weapons

Taiwan warned it faces “severe military challenges” from surging Chinese military activity edging closer to the island, as Beijing tries to change the status quo in the Taiwan Strait. Taipei expects China to continue sending warships and jets across the median line that divides the waterway, the island’s Ministry of National Defense said in an annual report. Meanwhile Taiwan said its military was stocking up on the same US-made weaponry that Ukraine had used to hold off Russia’s military to deter China from following through on threats to take the island by force if necessary.

Source: Bloomberg

Food Inflation

Global food prices fell for a fifth month after demand for some products weakened and there was a seasonal uptick in supplies. Wheat harvests in the northern hemisphere are helping ease supply constraints, while more grain trickles out of ports in Ukraine. This may offer some relief to consumers as they grapple with a deepening cost-of-living crisis. Still, the declines are not as sharp as in July when prices plunged the most since 2008, and food remains more expensive than a year ago.

Source: Bloomberg