The stock market is trending lower again, reversing gains recorded last week, as investors weigh the prospect of interest rate hikes ahead of the annual Jackson Hole Symposium this week.
It is understood that investors expect Federal Reserve (Fed) chairman Jerome Powell to confirm an aggressive rate hike, as economists had predicted with a 50 basis point jump in September.
Due to these factors, the Wall Street market showed several indices ending the trading session last week in a 'red ocean' while S&P 500 futures fell 0.5% and Nasdaq futures fell 0.6%.
The same situation also occurred in the Asian region when the market started trading early in the week on a weak note.
Japan's Nikkei 225 index fell 1.19%, the Topix slipped 0.91% while South Korea's Kospi fell 1.15% and the Kosdaq lost 1.27%.
Australia's gauge S&P/ASX 200 plunged 1% while MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3%.
Among the highlights in the Asian market is the action of China's central bank which is expected to reduce its main lending rate by 10 and 15 basis points.
On the other hand, currency movements saw the greenback continue to strengthen at 108.18 last week against a number of others.
As for commodities, the surge in the dollar has had an impact on the decline in gold and oil.
Brent crude was down $1.02 at $95.70 while US crude lost 99 cents at $89.78 while gold traded at $1,744 an ounce.
