Hong Kong Stocks Fall 2%, Leads Declines in Asia; Fed Expects a U.S. Recession
The Fed's comments erased earlier gains seen on Wall Street after the release of the U.S. consumer price index report.
The Hang Seng Tech Index fell 2.51%. Stocks ended lower. Dow Jones Industrial Average lost 0.11% after erasing gains made in the previous four days following U.S. inflation data. Australia's unemployment rate is expected to increase further in March
Export prices dropped by 6.4% in February after a 2.7% drop the previous month. Government data revealed that import prices fell by 6.9% in march, a steeper decline than the 0.5% decline seen in February. Morgan Stanley Investment Management's senior portfolio manager identifies stocks to avoid and buy in times of market uncertainty.
He cited the still high inflation rate in housing and services. Warren Buffett, Berkshire Hathaway's Chairman and CEO, said that he didn't believe he could manage the Federal Reserve better than Jerome Powell. "It does not mean that you are able to stop recessions or turn bad loans into better loans. It does mean, however, that the system must continue to function. Fred Imbert