Global Economy Braces for Fed Rate Hike Amid Rising Interest Rates

The global economy is facing increasing instability as interest rates continue to rise. In the US, demand for Treasury bonds has fallen sharply, indicating a weakening of investor confidence. The yield on the 10-year bond has reached 5.01%, its highest since 2007.

China's new-built house prices have stopped falling overall, but many cities are still experiencing price declines or stagnation. Retail sales in China rose just 0.4% in August from a year ago, below expectations and indicating weak demand for big-ticket items.

The price of gold has dipped to $4294/oz, while oil prices have jumped to $106.50/bbl in the US, with Brent crude at $109/bbl. The Kiwi dollar is down 20 bps from yesterday, trading at 57.6 USc, and the TWI-5 starts today at just over 61.

The bitcoin price has dropped 2.7% to $76,779, while volatility remains moderate at around +/-2.5%. The upcoming Federal Reserve meeting is expected to deliver a 25 bps rate hike, which could have significant implications for the global economy.