Tokyo stock exchange Nikkei 225 thud, which pays for the losses that sank Wall Street, in the session last Friday, after the hawkish words of the president of the St. Louis Fed, James Bullard.
The Nikkei 225 comes in at 4% before, and then reduces the losses but still falls by 3.43%. Strong falls in the stocks of Japanese car giants, such as Nissan and Honda, which collapsed by over -4%; Fanuc slipped by almost 6%. Among financials, Mitsubishi UFJ Financial Group lost nearly 3% and Mizuho Financial Group lost more than 2%.
Last Friday the Dow Jones dropped 533.37 points (-1.58%), at around 33,290.08 points; the Nasdaq slipped 0.92% to 14,030.38 points; the S&P fell 1.31% to 4,166.45 points.
The US stock market closed its worst week since last October after the more hawkish tones of Jerome Powell’s Fed and the sudden statement by the president of the St. Louis Fed, who said he saw a first hike in interest rates as early as in 2022 as inflation rises faster than previously expected.
The Fed exponent, interviewed by CNBC, remarked that expectations are now a year better than expected on the economic recovery front, and also added that inflation is marching at a faster pace. than estimated.
Bullard’s outlook is more hawkish than the averages that emerged from the Federal Open Market Committee (FOMC) this week, with dot plots pointing to up to two increases in 2023.