Global stocks fell sharply and the US dollar and Treasuries rallied as new Chinese lockdowns, fears of aggressive interest rate rises and a slowdown in economic growth pushed investors to search for safety.
“As in previous times when markets have cracked, a lot of headwinds are coming together,” said Neil Birrell, chief investment officer at Premier Miton Investors, “although the China situation looks like the big catalyst today.” “The week is starting with a firmly negative tone in global markets,” ING strategists commented in a note to clients, citing central banks tightening monetary policy, Russia and Ukraine “moving further away from a diplomatic solution” and “China’s Covid crisis”.said a 0.5 percentage point interest rate rise was “on the table” in an effort to combat soaring inflation.