Weakness in Asian Markets Caused by U.S. Dollar, Says StanChart's McDonnell

Weakness in Asian Markets Caused by U.S. Dollar, Says StanChart's McDonnell

Assessment

Interactive Video

Business

University

Hard

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The video discusses the recent market trends, highlighting a bounce in Asian stocks despite a weak start to the week due to trade war concerns. The primary cause of market weakness is attributed to the strong US dollar, which affects emerging markets. The discussion also covers the Federal Reserve's rate hike path and the impact of quantitative tightening, with insights from a paper by Ben Bernanke on the Fed's balance sheet shrinkage and its effect on interest rates.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a significant factor in the overnight trade performance of Asian stocks?

Increased oil prices

US dollar depreciation

Bargain hunters supporting the market

Trade war resolutions

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is identified as the primary cause of market weakness?

Political instability

Trade war concerns

US dollar strength

Rising oil prices

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the US dollar's strength affect emerging markets?

It boosts export competitiveness

It increases foreign investments

It leads to a withdrawal of portfolio funds

It stabilizes local currencies

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the expected number of rate hikes by the Federal Reserve for the current year?

Five

Four

Three

Two

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the impact of a $250 billion shrinkage in the Fed's balance sheet?

A decrease in inflation rates

No change in interest rates

An increase in interest rates by 25 basis points

A decrease in interest rates by 25 basis points