Global recession fears are leading to a mixed market performance with equities around the world staggering. Oil prices have also shown a downward inclination only to rise up again amid growing energy concerns worldwide.
Investors held on to the edge of their seats as another interest rate hike from the U.S. Federal Reserve loomed over their heads. Woes of inflation and recession within the global economy have had all but few biting their nails. As a result, investors that scrambled towards the greenback have pulled back as it rose to a two-decade high. On the other hand, the Euro has grown to reach parity within these few days.
On the one hand, as Pan- European stocks showed a rise with STOXX 600 index reaching 0.49%, MSCI’s gauge of stocks showed a download inclination at 0.22%, on the other.
The effects of the Russina-Ukraine war are now evident on the European economy with shortages in natural gas and the European central bank tightening monetary policies.
The fate of the economy will become much clearer this week as soon as economic data is released. The U.S. consumer data will shed light on the effects of Federal Reserve monetary policies. Unfavorable data will lead to the implementation of a tighter monetary policy by the Federal Reserve.