Stocks eye steepest slide since 2020 as central bankers roil markets

Business 14:38 17 Jun, 2022

Stocks eye steepest slide since 2020 as central bankers roil markets

Stocks eye steepest slide since 2020 as central bankers roil markets

World stocks headed for their worst week since markets' pandemic meltdown in March 2020 as leading central banks doubled down on tighter policy in an effort to tame inflation, setting investors on edge about future economic growth, Qazet.az reports.

The biggest U.S. rate rise since 1994, the first such Swiss move in 15 years, a fifth rise in British rates since December and a move by the European Central Bank to bolster the indebted south all took turns in roiling markets.

After a week of punchy moves across asset classes, world stocks were down 0.2% on Friday to take weekly losses to 5.8% and leave the index on course for the steepest weekly percentage drop in more than two years.

Overnight in Asia, the yen was up 1.8% to 134.55 per dollar in volatile trade, while MSCI's broadest index of Asia-Pacific shares outside Japan fell to a five-week low, dragged by selling in Australia. Japan's Nikkei fell 1.8% and headed for a weekly drop of almost 7%.

S&P 500 futures were up 0.5% and Nasdaq 100 futures rose 1% but they are well underwater on the week.

“The more aggressive line by central banks adds to headwinds for both economic growth and equities," said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. "The risks of a recession are rising, while achieving a soft landing for the US economy appears increasingly challenging.”

Data from analysts at Bank of America showed more than 88% of the stock indexes it tracks are trading below their 50-day and 200-day moving average, leading markets "painfully oversold".