After Fed Chairman Jerome Powell pointed to the possibility of a recession in the USA, risk appetite in global markets decreased.

Powell did not rule out the possibility of a recession in his presentation to the U.S. Senate. Answering the senators’ questions after his speech, Powell stated that achieving a soft landing in the economy would be “very difficult” and said there was a possibility of a recession, but they did not want it.

Risk appetite remains low after Fed Chairman Jerome Powell’s recession statements. European and American stock futures fell this morning, while Asian indices were flat. S&P 500 futures are down 0.3 percent this morning, while Euro Stoxx 50 futures are down 0.7 percent. Hong Kong Hang Seng stands out in Asia with 1 percent on news that the city’s new leader will adopt a more open border policy. With its low-risk appetite, safe havens are still rallying today. The yield on two-year U.S. bonds fell to 3.06%, while the yen rose 0.6% against the dollar.