Premarket: World stocks head back towards 2-year lows as mood sours

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 92%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Rising interest rates, an escalation in the Ukraine war and increased efforts in China to curb COVID-19 cases all weigh on sentiment

World stocks headed back towards their lowest levels in almost two years on Tuesday, with sentiment weighed down by unease about rapidly rising interest rates, an escalation in the Ukraine war and China stepping up pandemic measures.

“We are heading toward a serious economic downturn and central banks are tightening policy, which is a bad combination for markets,” said Berenberg chief economist Holger Schmieding.”When do markets start to look beyond this? The next two months could be still rough.” Citing a “material risk” to financial stability, the BoE said it would buy up to 5 billion pounds of index-linked debt per day from Tuesday until the end of the week.

The backdrop of the bond market rout is ever higher interest rates. Nerves are fraying ahead of Thursday’s release of U.S. inflation data which could set the stage for another big hike from the Federal Reserve in November. That outlook is giving dollar bulls another run and has the greenback drifting toward the milestone highs it scaled last month.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Mixed start on Wall Street ahead of U.S. earnings reportsWorld shares were mostly lower on Monday, with Chinese markets logging moderate losses after reopening from a weeklong holiday to news of more lockdowns in China due to rising COVID-19 cases.
Source: CTVNews - 🏆 1. / 99 Read more »