- As investors weighed the economic outlook after Fed's Powell acknowledged the risk of a recession, Asian stocks sagged, treasuries rallied, and oil fell.
- The Asian share index remained stable, with a report that Hong Kong's incoming leader, john lee, is working on a strategy to reopen the city's borders boosting sentiment. Futures in the United States and Europe were in the red.
- Treasuries were little changed after a strong session on Wall Street, with policy-sensitive two-year yields hovering around 3.06%. Bond prices increased in Australia and New Zealand. The dollar and the yen both rose slightly.
- Oil fell 3% to under $103 per barrel, weighed down by concerns about the demand outlook. A raw-materials index has reached its lowest level since March.
- In testimony to the Senate on Wednesday, Fed's Powell stated that the United States must reduce high inflation to the 2% target. He acknowledged that sharp rate increases could cause an economic contraction and described a soft landing as 'very challenging.'
