World: Stocks plummet to 22-month low as Fed hawks circle: markets wrap

  • 📰 dailymaverick
  • ⏱ Reading Time:
  • 53 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 84%

United States News News

United States United States Latest News,United States United States Headlines

US stocks plunged to the lowest since November 2020 as another group of Federal Reserve officials struck a hawkish tone, and turmoil in Europe continued to fray investor nerves.

Signs of stress emerged in the interest-rate swaps market and a leveraged-buyout deal was shelved. US Treasuries pared earlier losses, with the 10-year yield hovering around 3.76%.

In Europe, UK gilt yields rose after Prime Minister Liz Truss’s defence of unfunded tax cuts that sent markets into turmoil failed to persuade investors. German inflation topped 10% and the country agreed to energy caps that could add to inflationary pressures. Investors are grappling with threats posed by discordant moves from central banks over the past few days, with Fed officials adamant on further monetary tightening, the Bank of England unveiling a plan to support government debt and authorities in Asia trying to prop up weakening currencies.

“I was actually really surprised by the impact that the Bank of England had on the global market,” said Fiona Cincotta, senior financial markets analyst at City Index. “Yet, it was short-lived, the relief rally. We sort of pushed past that quite quickly and it seems to be back to that narrative of inflation fears, higher-interest-rate fears.”

Fed officials haven’t shied away from warning that more rate-hike pain is yet to come, with Cleveland Fed president Loretta Mester

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

The United Kingdom is begging for aid from India. Have you written about this? Reuters did so. How shameful

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:

 /  🏆 3. in US

United States United States Latest News, United States United States Headlines

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

World: Stocks plummet to 22-month low as Fed hawks circle: markets wrapUS stocks plunged to the lowest since November 2020 as another group of Federal Reserve officials struck a hawkish tone, and turmoil in Europe continued to fray investor nerves. The United Kingdom is begging for aid from India. Have you written about this? Reuters did so. How shameful
Source: dailymaverick - 🏆 3. / 84 Read more »