World stocks eye glum 2022 even as dollar triumphs

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High inflation and Russia's war take their toll on global index as greenback set for best performance in seven years

Local Kherson resident Klavdia, 82, stands near her house on December 29 which was destroyed by a Russian strike, as the attack on Ukraine continues, which also weighed on world markets. Picture: REUTERS/OLEKSANDR RATUSHNIAK/FILE PHOTO

The Federal Reserve and other central banks have been fighting inflation in the face of supply chain shortages and an energy crisis due to the Covid-19 pandemic and oil producer Russia's invasion of Ukraine. European stocks fell 0.5% and were on course for a 12% annual drop. Britain's FTSE 100, which houses several exporters, was down 0.2% but was bound for a rise of more than 1% in 2022.

China's blue-chip CSI 300 Index was up 0.4% on the day but down 22% on the year, while Hong Kong's Hang Seng index rose 0.2% on the day but fell 16% in 2022. Sterling was set for its worst performance against the dollar since 2016, when Britain voted to leave the European Union. It was last at $1.2063, down 0.09% on the day and around 11% on the year.

 

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