Supply chain problems and price boomers continue to grip the market to the point of impacting corporate earnings as well as slowing manufacturing output which has brought down rallies on the stock market.
The MSCI worldwide stock index closed weaker at 0.91% while the pan-European STOXX 600 index fell 1.14%.
The rally on Wall Street ended with the Nasdaq Composite down 2.35% and the S&P 500 losing 0.81% while the Dow Jones Industrial average index returned a slight loss at 0.15%.
Meanwhile, value stocks rose 0.17% while growth stocks fell 1.90%.
According to senior investor at InspereX, David Petrosinelli, the Federal Reserve’s (Fed) aggressive action in raising interest rates to fight inflation will lead to an economic downturn.
In Europe, European Central Bank (ECB) President Christine Lagarde's hawkish decision to raise interest rates, expected by 50 basis points, has made investors excited and this was confirmed by Investec London's chief economist.
Meanwhile, Treasury yields also suffered the same fate as weakness in equities has set off signals against safe -haven assets such as United States (US) government bonds.
German 10 -year bond yields fell 9 basis points at 0.959% and Treasury yields fell to a 1 -month low with the benchmark 10 -year yield note declining 9.8 basis points at 2.761%.
Summary on the currency, the dollar index fell 0.362%, it hit a 1 -month low after Lagarde’s comments that helped the Euro soar by 0.39% at $ 1.0731.
For commodities, gold prices climbed to a 2-week high, up 1% at $, 865.40 an ounce, with a weaker dollar and lower Treasury yields pushing the metal safe-haven surge.
Cryptocurrencies, meanwhile, saw Bitcoin up 0.99% at $ 29,371.04.
