Reuters reported that there are "$10 trillion government debt around the world offering only negative yields." that can cause a lot of pain not to mention shock and awe if there is an unexpected flush of inflation or rising interest rates.
Meanwhile, Asian shares were mixed overnight Thursday as the Fed showed its more dovish side and oil finished higher in the U.S. The Nikkei 225 was down 0.25%, the Kospi traded up 1% and the Hang Send edged higher 0.95%. Mainland Chinese shares were down slightly with Shanghai Composite off 0.17% and the Shenzhen down 0.2%. this followed the previous sell off yesterday as concerns abut global growth captured the attention of investors.
In the currency market, CNBC noted, the dollar traded at 96.081 against a basket of currencies, coming off levels near 96.290 it traded at on Wednesday afternoon Asia time.
The Japanese yen, a safe-haven currency, traded at 100.96 against the greenback, strengthening from an earlier session low of 101.40, and compared to levels near 103 on Friday. Analysts said the fresh strength in the yen was due to a flight to safety amid jitters across financial markets.
The British pound traded at $1.2940 as of 10:35 a.m. HK/SIN on Thursday. The pound dropped to a fresh 31-year low of $1.2796 on Wednesday amid persistent uncertainty surrounding the U.K.'s future as a result of its decision to leave the European Union.
Perhaps the biggest Asian news centered on Australia and Standard & Poor's downgrading the country's sovereign debt to AAA negative, saying that the country's road back to budget surpluses looked weak. That delivered a hit to the Australian dollar. Standard and Poor released a statement saying: “We are revising the rating outlook on Australia to negative from stable because we believe that without remedial action, the government’s fiscal stance may no longer be compatible with the country’s high level of external indebtedness,”
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