Asian shares and US stock markets are under pressure this Thursday due to rising interest rates and tensions in the Middle East. The situation is further exacerbated by a significant price drop in China's housing sector, excluding state-subsidized housing. As per the National Bureau of Statistics, new-home prices in 70 cities declined 0.3% from August, marking the steepest decrease since October 2022.
This downward trend casts doubt on Beijing's efforts to revive the property market and has noticeably affected consumer sentiment. The housing market performance is a critical factor for the Chinese economy, as it directly influences consumer spending and overall economic stability.
In addition, data from the Treasury International Capital (TIC) indicates a four-year high sell-off of US bonds and stocks by Chinese investors. This trend has led to increased US yields and heightened fears about treasury oversupply overwhelming foreign investors.
Market participants are now awaiting Jerome Powell's address at the Economic Club of New York, which could potentially offer some respite for stocks amidst the current volatility. The Federal Reserve Chairman's speech is expected to provide insights into the central bank's outlook on interest rates and inflation, key factors affecting global markets.
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