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Author of the article:
Herbert Lash and Danilo Masoni
Feb 23, 2021 • 10 minutes ago • 3 minute read
NEW YORK/MILAN — Global equity markets slid on Tuesday as a rally in commodity-related assets gave in to pressure from fears of an over-bought market as investors dumped tech stocks, though remarks by Federal Reserve Chair Jerome Powell helped calm sentiment.
Copper, a leading indicator of the economic cycle, touched a fresh 9-1/2 year high before paring gains as equities markets fell, while oil traded close to more than one-year highs as the easing of coronavirus lockdowns was expected to boost demand.
Gold slid as the dollar rebounded from six-week lows, with other precious metals joining the slide. But a degree of angst was reflected in Cboe’s market volatility index, up 6.9% and touching multi-week highs.
Powell said in prepared remarks for a U.S. Senate Banking Committee hearing that the recovery remains “uneven and far from complete,” and that it will be “some time” before the Fed considers changing policies aimed at helping regain full employment.
Powell believes monetary policy needs to be supportive and that there is a long way to go to repair the jobs market and before inflation becomes a concern, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston…