As investors read between the lines on comments from a Federal Reserve official, the global market is taking another hit. The reserve official says inflation is on the rise and policymakers will do what they can to cool it. Traders are taking that as a sign that a fourth interest rate hike could be coming this year.
This, coupled with troubles in China’s manufacturing sector caused a sharp drop for the Nikkei, which fell 1.4 per cent in overnight trading.
Analysts expect more market volatility for the last day of February ahead of a quarterly economic growth update in the US. More growth could lead to a higher chance of an interest rate hike.
This morning the price of crude is still holding above the 60.00 threshold, down slightly to 62.85 a barrel.
Gold is up by 2.20 to 1,320.
The Loonie is still struggling down to 78.29 cents US.