Wall Street opened lower while European markets were down in the afternoon after Asia closed on a more positive note in the final trading sessions of 2022.
Equities were slammed as the US Federal Reserve, the European Central Bank and the Bank of England aggressively lifted interest rates in a bid to tackle rampant consumer price rises. The move carries the risk of sparking recession as higher borrowing costs slow economic activity.The MCSI World Equity Index has lost almost a fifth in its worst annual performance since 2008, when markets were ravaged by the global financial crisis.
Covid spiked once more in the Asian superpower in December after Beijing relaxed its strict curbs in the face of rare public outcry. That also prompted worries about the impact on stretched global supply chains. In commodities, oil prices rallied in 2022 with Brent gaining 7.5 percent and New York crude adding 4.2 percent.
"The most important take of the year is: the era of easy money ended, and ended for good," noted SwissQuote analyst Ipek Ozkardeskaya.