The MSCI Asia Pacific ex-Japan index is down 10 percent from the start of July. India too got a bit of a wobble last week. The worry can be due to multiple factors -- it could be tightening of China’s regulation, delta variant-driven growth downgrades and concerns over the US Fed tapering. So, how are global markets looking overall? Is this just a mini wobble or is something larger afoot?

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What is the market worried about?

In terms of data, which we got last week in the US, be it manufacturing, retail sales, housing and National Association of Home Builders (NAHB) housing sentiment - all missed expectations!

Next is the 10-year inflation expectations in the US which have also fallen sharply. This could be a result of the collapse in oil prices that we have seen.

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Barclays Private Bank sees Fed tapering in December or early January; expects higher volatility ahead

Oil, copper, yields etc., the markers of the global reflation trade, are on a downturn. All eyes are now on Fed chair Jerome Powell’s address at Jackson Hole in Wyoming where the plans for policy normalisation will be watched keenly.

Watch the accompanying video of CNBC-TV18’s Prashant Nair, for a detailed analysis of what the data points are suggesting.

(Edited by : Abhishek Jha)

First Published:Aug 23, 2021 3:14 PM IST