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Global financial markets continued to be volatile last week. Many major central banks raised interest rates sharply and anticipated further rate hikes to come, triggering significant volatility in the stock, foreign exchange and commodity markets. The market is mainly concerned that rapid and substantial interest rate hikes will weaken economic growth momentum and business profits, causing the economic environment to become more fragile. Investors are also worried that the global economy is already on the verge of recession, which could spark a new round of significant financial volatility.

The third quarter of 2022 is approaching an end. The epidemic is still changing fast and impacting on Hong Kong's economy, but the situation has become more stable when compared to the first half this year. The value of retail sales rebounded year-on-year in July. The unemployment rate had dropped from a high of 5.4% in February to April to 4.3% in May to July, with the total number of unemployed persons having fallen from some 200 000 to under 170 000. The improving labour market is expected to last when unemployment figures for June-August are released this week. Notable improvements to the employment of grassroots workers in such industries as retail, catering, etc. have also been observed.

It was the Mid-Autumn Festival yesterday and the beginning of a long weekend. The streets were more alive and filled with a festive atmosphere. As we celebrate the festival and enjoy the holiday, I hope we could all maintain vigilance and remember to protect ourselves and our families against the epidemic.