Stocks slide, dollar rises as growth fears mount

Capitulation is the wrong approach but earnings pressure will follow to match the macro downgrades

Stocks fell and the dollar rose on Friday, beginning the second half of the year much as the first one had ended, only this time with bonds rallying for a change as investors have shifted from worrying about inflation to fearing a global recession, Qazet.az reports.

S&P 500 futures fell 1%. MSCI's index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS)fell 1%, with the heaviest fall in Taiwan where the growth-sensitive benchmark index (.TWII)slid 3% to its lowest since late 2020.

Japan's Nikkei (.N225) fell 2%. The Australian and New Zealand dollars each fell 1% to two-year lows. U.S. Treasuries rose, driving benchmark 10-year yields to one-month lows.

Demand-tracking commodities such as oil and copper were under pressure, leaving Brent crude futures at a one-week low of $108.87 a barrel.

"Capitulation is the wrong approach but earnings pressure will follow to match the macro downgrades," said George Boubouras at K2 Asset Management in Melbourne.