Policymakers from the Federal Reserve and European Central Bank used speeches at last week’s annual meeting in Jackson Hole, Wyoming, to reiterate their commitment to fighting inflation despite the risk of pushing the economy into recession. . Wall Street’s benchmark S&P 500 fell 0.1% in afternoon trading on Monday, extending losses after falling sharply after Fed Chairman Jay Powell spoke last Friday. The technology-dominant Nasdaq Composite fell 0.4%. U.S. Treasury prices, which were lower immediately after Powell’s speech, fell more sharply on Monday. The yield on the two-year note, which is highly sensitive to short-term interest rate expectations, hit 3.48 percent – its highest level since 2007 – before easing to 3.42 percent, up 0.02 percent for day. Bond yields rise when prices fall. The yield on the benchmark 10-year note rose 0.08 percentage points to 3.11%. The impact of Powell’s hawkish speech, in which he warned the Fed “must go on until the job is done,” was also reflected in the Vix volatility index, a measure of expected swings in U.S. stocks commonly referred to as the Wall. The “fear meter” of the street. The Vix rose to 27, its highest point since mid-July. “Officials remain firmly committed to returning inflation to the central bank’s 2 percent target,” said Mansoor Mohi-uddin, chief economist at the Bank of Singapore. “We believe the odds of a 0.75 percentage point move next month have increased and will be closely watching August US payrolls and consumer inflation.” Several senior European policymakers also warned that monetary policy should remain tight in the eurozone for a long time. The continent’s main stock indexes fell but recovered somewhat from their initial lows. The benchmark Euro Stoxx 600 was 0.8 percent lower. Germany’s Dax fell 0.6 percent and the Cac 40 in Paris fell 0.8 percent. London was closed for a public holiday. Japan’s benchmark Topix led markets lower in Asia, down 1.8 percent. The Hang Seng fell 0.7%.

Italian 10-year bond yields rose 0.11 percentage point on Monday morning to 3.79 percent, close to the 4 percent mark seen by many as the point where its debt starts to look unsustainable. The Japanese yen fell 0.9 percent to ¥138.71 against the dollar. Sterling fell 0.2 percent to $1.172, hitting its lowest level against the dollar since the early days of the coronavirus pandemic, after Goldman Sachs cut its expectations for economic growth for the United Kingdom to 3.5 percent, from 3.7 percent previously. Additional reporting by Martin Arnold in Frankfurt