The rout in global financial markets that has spared few asset classes extended into Thursday, with Asian stocks plunging across the board, led by a 6 percent fall in Japan’s benchmark Nikkei 225 in the morning session.
With investors dumping assets ranging from bonds, currencies to equities, there appears to be a lack of hope among investors that central bank policies can generate real economic recovery, said strategists.
“We are seeing the first signs of a lack of confidence in the ability of central banks to control the interest rates, to stimulate inflation, and real GDP [gross domestic product] growth rates,” Viktor Shvets, head of strategy research, Asia, at Macquarie, told CNBC Asia’s “Squawk Box” on Thursday.
“We had all sorts of QEs [quantitative easing] of various forms for the last five years and if you look at inflation all around the world it’s falling – whether it’s the U.S., euro zone, Asia Pacific, emerging markets. I think that’s a problem,” he added.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.