Bear market territory beckons as stocks plunge

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Bear market territory beckons as stocks plunge via IrishTimesBiz

European stocks hit one-year lows on Monday, with Germany’s blue-chip index looking set to confirm a bear market as Western countries mulled a Russian oil import ban, raising the prospects of broader inflationary risks and slowing economic growth.

Brent crude prices soared near $130 a barrel, their highest since 2008 after US secretary of state Antony Blinken said the United States and European allies are exploring banning imports of Russian oil. The domestically focused mid-cap index fell 2.3 per cent, with travel and leisure stocks among top drags.An Asian stock benchmark plunged into a bear market on growing investor concerns about the economic fallout of the war in Ukraine and sustained regulatory pressure on China’s technology sector.

Monday’s broad rout was sparked by fears of a global inflation shock as oil prices extended their relentless surge on the prospect of a ban on Russian crude supplies. Asian equities have struggled as investors also grapple with renewed concerns about China’s crackdown on private enterprise at a time when earnings growth in the region is already lagging global peers.

 

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