Stocks are experiencing a broad slump, with many market participants caught off guard by the speed of the yen's rally.
The Japanese national flag is seen at the Bank of Japan (BoJ) headquarters in Tokyo on July 31, 2024.
'An implosion of the carry trade'U.S. stocks kicked off the month sharply lower, as fresh data prompted fears of a worsening economic outlook.
"First of all, the hawkish Bank of Japan caused an implosion of the carry trade over a short-term basis.
And all of that helps push equity markets, which had been quite expensive, even lower," he continued.
Persons:
Nogi, Russell Napier, Napier, Cedric Chehab, Chehab, CNBC's
Organizations:
Afp, Getty, U.S ., U.S, Bank of Japan, The Bank of Japan, Federal, Dow Jones, Nasdaq, BMI, hawkish Bank of Japan
Locations:
Tokyo, China, Japan, U.S