Stocks, oil prices extend losses on recession fears

Central banks have provided very little Christmas cheer for stock markets this week.LONDON - Stock markets dropped further on prospects of more aggressive rises to interest rates to fight sky-high inflation, renewing concerns over the global economy entering recession next year.

While inflation in most countries has started coming down -- helped by a drop in energy costs -- it remains at multi-decade highs. "In a nutshell, it is all about fears over a sharper economic slowdown in 2023 than previously expected," noted Fawad Razaqzada, market analyst at City Index trading group.

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