Asian and European markets tumble after Powell's rates warning

Pedestrians wearing protective masks amid the coronavirus disease (Covid-19) outbreak, walk past an electronic board displaying Japan's Nikkei index outside a brokerage in Tokyo, Japan on Monday, August 29, 2022.- Reuters

SINGAPORE, Aug 29, 2022 (AFP): Markets sank on Monday and the dollar rallied after Fed boss Jerome Powell warned of more interest rate hikes to fight inflation and poured cold water on the prospects of a cut in the new year.

The hefty selling tracked a painful day on Wall Street, where all three main indexes tanked between three and four percent as investors contemplated an extended period of monetary tightening.