Global stocks fell and bond yields rose on Wednesday, while the dollar strengthened, as investors fretted over soaring inflation and the effect on global growth from looming interest rate rises.
Soaring food and energy costs drove eurozone inflation to a record-high 8.1% in May, figures on Tuesday showed, stoking concern about rate rises not just in Europe but globally. “It’s just an incredibly uncertain environment at the moment,” said Mike Bell, a global market strategist at JPMorgan Asset Management. “In times like that, it makes sense just to moderate the size of one’s risk positions.”
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%, dragged down by Hong Kong’s Hang Seng index. The dollar index, which measures the currency against six major peers, including the yen, rose 0.2% to 102.05, extending a 0.4% rally from Tuesday.The US Federal Reserve on Wednesday begins shrinking asset holdings built up during the pandemic. Traders expect it will raise rates by 50bps at meetings this month and next and they are unsure and increasingly worried about after that.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: TheSAnews - 🏆 25. / 59 Read more »
Source: TheSAnews - 🏆 25. / 59 Read more »