US equity futures fell along with stocks in Europe and the dollar resumed its upward march Thursday after high US inflation hardened expectations for more aggressive monetary tightening.
US equity futures fell along with stocks in Europe and the dollar resumed its upward march Thursday after high US inflation hardened expectations for more aggressive Federal Reserve monetary tightening that could trigger a recession.
Traders have shifted toward expectations of an historic one percentage-point Fed interest-rate hike later this month after the US consumer-price gauge clocked a 9.1 per cent annual climb. Fed Bank of Atlanta President Raphael Bostic said “everything is in play” to combat price pressures. The euro fell back toward US$1, after briefly dipping below it Wednesday, and European bonds plunged after Bloomberg reported that the European Commission had cut its growth forecast and lifted the inflation outlook for the common-currency area. Italy’s 10-year yield climbed more than 10 basis points and the country’s equty benchmark underperformed as Mario Draghi’s governing coalition appeared to be heading for a break-up.
If higher costs prove to be persistent and come alongside a global economy buckling under rate hikes, that could be toxic for a range of assets already nursing heavy losses in 2022.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Asian stocks up after U.S. inflation fuels rate hike fearsAsian stock markets rose Thursday after higher U.S. inflation stoked expectations of more rate hikes that investors worry will chill economic growth.
Read more »
Recession fears outweigh the lure of cheap U.S. bank stocksInvestors are bracing for a fresh slide in banking stocks, with fears of a hit from a potential recession outweighing the lure of relatively cheap valuations
Read more »
Volatile U.S. markets boost appeal of dividend stocksInvestors are giving the shares of dividend-paying companies a second look as they seek to buttress their portfolios against surging inflation
Read more »
Stocks fall in preamble to U.S. inflation report as Treasuries further invert sounding recession alarmThe Treasury curve inversion deepened to levels last seen in 2007 amid fears that rate hikes will sink the economy. Read on
Read more »
TSX today: Energy stocks drop as oil falls below US$100 - BNN BloombergCanada’s benchmark stock index fell mid-day Tuesday as weaker crude prices weighed on major energy companies.
Read more »
World stocks sink after U.S. inflation fuels rate hike fearsGlobal stocks and Wall Street futures sank Thursday after higher U.S. inflation stoked expectations of more rate hikes that investors worry will chill economic growth.
Read more »