Markets sulumped on perfect cocktail uncertainty

Global markets fared pretty badly on Monday as US 10 year bond yield has broken record high first time in 7 years last Friday. Markets anticipated US Fed would likely to escalate its rate hike schedule in the near future. On the other hand, China Central bank slashed 1% off banking reserve requirement but markets reacted just as bad, leading Asian Pacific area region markets sell off. Dow Jones largely mirrored global markets trend but recovered at the last hour. On the other hand, ASX 200 fell to its 7 year low, led down by material stocks, the question is asked if the price of iron ore could maintain its upward momentum in the near and medium term, Morgan’s Asian Desk Chief, Raymond Chan, will shed light on it.

Iron Ore at a mining field in WA. AAP Source: AAP