Stocks fall on rate hike bets, Yen drops to 24-year low
Asian stocks fell on Wednesday as investors failed to find any cheer in strong U.S. economic data and instead considered what it might mean for a hawkish Federal Reserve, with a surging dollar weighing heavily on regional currencies.
European stock markets opened in the red on Wednesday after U.S. economic data prompted traders to ramp up Federal Reserve rate hikes bets, pushing the dollar to a 24-year high against the Japanese yen.
U.S. Treasury yields jumped and the dollar received a boosted by data on Tuesday which showed the U.S. services industry picked up in August, reinforcing expectations for aggressive Fed rate hikes. Markets were pricing in a 73% chances of a 75 basis point hike at the Fed’s next meeting.
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