World stocks fell towards fresh 2022 lows and the Japanese yen slid to levels not seen in nearly a quarter of a century on Monday as red-hot US inflation fuelled worries about even more aggressive policy tightening in a big week for central banks.
An index of world stocks is down 0.7%, just shy of a new 2022 low. European stock indices are a sea of red in early trading with benchmark shares down nearly 2% while US stock futures indicated a lower start. European bonds were also caught up in the broadening debt market sell-off after a hawkish European Central Bank meeting last week, with two-year German bond yields rising above 1% for the first time in more than a decade.
Multiple indicators of growth in markets slumped on Monday from technology shares in Hong Kong to the Australian dollar as investors fled to the perceived safe haven shelter of the US dollar.