The Fort Worth Press - Major markets tumble on heightened recession fears

USD -
AED 3.672991
AFN 67.000252
ALL 92.450024
AMD 386.974854
ANG 1.802123
AOA 912.999737
ARS 1004.028701
AUD 1.550664
AWG 1.8025
AZN 1.691108
BAM 1.857325
BBD 2.01886
BDT 119.48491
BGN 1.852673
BHD 0.37685
BIF 2897.5
BMD 1
BND 1.345641
BOB 6.908832
BRL 5.7881
BSD 0.999886
BTN 84.392794
BWP 13.725155
BYN 3.272208
BYR 19600
BZD 2.01548
CAD 1.406181
CDF 2866.000223
CHF 0.891097
CLF 0.03535
CLP 975.409788
CNY 7.230298
CNH 7.255885
COP 4483
CRC 510.721544
CUC 1
CUP 26.5
CVE 104.898224
CZK 24.039499
DJF 177.720367
DKK 7.089925
DOP 60.450038
DZD 133.619438
EGP 49.651402
ERN 15
ETB 121.924977
EUR 0.950575
FJD 2.274992
FKP 0.789317
GBP 0.79008
GEL 2.724985
GGP 0.789317
GHS 16.050165
GIP 0.789317
GMD 71.000134
GNF 8630.999733
GTQ 7.721894
GYD 209.184836
HKD 7.781525
HNL 25.079657
HRK 7.133259
HTG 131.382772
HUF 386.447959
IDR 15958.35
ILS 3.742715
IMP 0.789317
INR 84.479796
IQD 1310.5
IRR 42104.999699
ISK 138.4698
JEP 0.789317
JMD 158.287592
JOD 0.709098
JPY 156.361045
KES 129.502089
KGS 86.3765
KHR 4051.000028
KMF 466.50319
KPW 899.999621
KRW 1407.51502
KWD 0.30742
KYD 0.833207
KZT 495.71708
LAK 21944.999736
LBP 89599.999991
LKR 292.121707
LRD 184.10406
LSL 18.19889
LTL 2.95274
LVL 0.60489
LYD 4.879731
MAD 9.972503
MDL 18.112322
MGA 4659.999992
MKD 58.237769
MMK 3247.960992
MNT 3397.999946
MOP 8.01546
MRU 39.965002
MUR 47.189959
MVR 15.460093
MWK 1735.000056
MXN 20.44638
MYR 4.481991
MZN 63.849926
NAD 18.19805
NGN 1679.960183
NIO 36.760158
NOK 11.163435
NPR 135.033904
NZD 1.710952
OMR 0.385021
PAB 0.999905
PEN 3.804499
PGK 3.94225
PHP 58.903501
PKR 278.101709
PLN 4.106796
PYG 7808.968491
QAR 3.64075
RON 4.728699
RSD 110.633973
RUB 99.63521
RWF 1368
SAR 3.756031
SBD 8.383384
SCR 14.744996
SDG 601.501853
SEK 11.00999
SGD 1.34649
SHP 0.789317
SLE 22.704736
SLL 20969.504736
SOS 571.497762
SRD 35.356496
STD 20697.981008
SVC 8.749122
SYP 2512.529858
SZL 18.2053
THB 35.012982
TJS 10.658475
TMT 3.5
TND 3.151972
TOP 2.342103
TRY 34.33943
TTD 6.789045
TWD 32.619503
TZS 2660.000286
UAH 41.219825
UGX 3669.445974
UYU 42.477826
UZS 12799.999732
VES 45.453079
VND 25400
VUV 118.722009
WST 2.791591
XAF 622.917458
XAG 0.032786
XAU 0.000389
XCD 2.70255
XDR 0.753255
XOF 620.493331
XPF 113.383085
YER 249.849892
ZAR 18.284165
ZMK 9001.203741
ZMW 27.421652
ZWL 321.999592
  • CMSD

    -0.0050

    24.725

    -0.02%

  • RBGPF

    -0.9400

    59.25

    -1.59%

  • CMSC

    -0.0600

    24.55

    -0.24%

  • SCS

    -0.1000

    13.27

    -0.75%

  • BCC

    -2.2000

    140.35

    -1.57%

  • NGG

    0.2500

    62.37

    +0.4%

  • RIO

    -0.1900

    60.43

    -0.31%

  • BTI

    0.0700

    35.49

    +0.2%

  • GSK

    -0.7200

    34.39

    -2.09%

  • BP

    0.4800

    29.05

    +1.65%

  • RYCEF

    -0.3200

    6.79

    -4.71%

  • JRI

    -0.0300

    13.21

    -0.23%

  • BCE

    -0.3700

    26.84

    -1.38%

  • RELX

    -0.1700

    45.95

    -0.37%

  • VOD

    -0.0700

    8.68

    -0.81%

  • AZN

    -0.2500

    65.04

    -0.38%

Major markets tumble on heightened recession fears

Major markets tumble on heightened recession fears

Global equities, oil prices and bitcoin plunged Monday on heightened recession fears triggered by runaway inflation.

Text size:

The dollar, however, gained versus major rivals, benefiting from its status as a haven investment and expectations of aggressive interest-rate hiking from the Federal Reserve.

Bond yields also rose, with 10-year US Treasuries above 3.3 percent and Italy's 10-year debt breaking four percent for the first time in more than eight years.

The US currency struck a 24-year peak against the yen before retreating, while it broke above 78 Indian rupees for the first time. It jumped one percent versus the pound.

"The hangover from a higher-than-expected US inflation reading is continuing to cause scissoring pain throughout the markets, as it extinguishes the hope the US Federal Reserve might be able to take its foot off the pedal on interest rate rises," noted AJ Bell investment director Russ Mould.

US and European stocks had already tumbled Friday following the inflation data, with Asia following suit Monday.

European stock markets extended pre-weekend losses with drops of over two percent, while London took a hit also from data showing the UK economy contracted in April for a second month in a row.

Wall Street also tumbled, with the blue-chip Dow down around 2.3 percent in late morning trading and the tech-heavy Nasdaq falling nearly four percent.

World oil prices, whose surge has contributed massively to soaring inflation, slid around 1.5 percent as the high cost of living increased recession expectations.

The possibility of more Covid restrictions in China's biggest cities also weighed on crude futures as the country is a major oil consumer.

Fresh coronavirus outbreaks in Shanghai and Beijing have seen authorities reimpose containment measures.

"This has fed into a narrative that the global economy will slow even further at a time when prices are showing little sign of doing the same," said market analyst Michael Hewson at CMC Markets UK.

- Bitcoin crash -

Bitcoin tumbled to an 18-month low of under $23,000 as investors shunned risky assets in the face of the vicious global markets selloff.

The unit took a heavy knock also from news that cryptocurrency lending platform Celsius Network paused withdrawals, citing volatile conditions.

"It is not very surprising to see such a strong downturn as we have noticed an increased correlation over the last few years between traditional stocks, which have also tanked recently, and the cryptocurrency market," noted XTB chief market analyst Walid Koudmani.

Patrick O'Hare, analyst at Briefing.com, said the carnage in the crypto market "is compounding worries about growth prospects due to the reduced wealth effect that also incorporates falling stock and bond prices."

Investors were left surprised Friday when data showed US inflation jumped to 8.6 percent in May, the fastest pace in more than 40 years, as the Ukraine war further fuelled energy and food prices.

The reading has led to fervent speculation that the Fed will now be contemplating a single interest-rate lift of 75 basis points at its meeting this week.

With the central bank forced to be more aggressive, there is heightened concern that the US economy could be sent into recession next year.

"The market is now thinking much more about the Fed driving rates sharply higher to get on top of inflation and then having to cut back as growth drops," said SPI Asset Management's Stephen Innes.

- Key figures at around 1530 GMT -

New York - Dow: DOWN 2.3 percent at 30,663.44 points

EURO STOXX 50: DOWN 1.9 percent at 3,444.93

London - FTSE 100: DOWN 1.5 percent at 7,205.81 (close)

Frankfurt - DAX: DOWN 2.4 percent at 13,427.03 (close)

Paris - CAC 40: DOWN 2.7 percent at 6,022.32 (close)

Tokyo - Nikkei 225: DOWN 3.0 percent at 26,987.44 (close)

Hong Kong - Hang Seng Index: DOWN 3.4 percent at 21,067.58 (close)

Shanghai - Composite: DOWN 0.9 percent at 3,255.55 (close)

Dollar/yen: DOWN at 134.13 yen from 134.42 yen late Friday

Euro/dollar: DOWN at $1.0433 from $1.0526

Pound/dollar: DOWN at $1.2161 from $1.2309

Euro/pound: UP at 85.78 pence from 85.39 pence

Brent North Sea crude: DOWN 1.5 percent at $120.13 per barrel

West Texas Intermediate: DOWN 1.6 percent at $118.72 per barrel

burs-rl/pvh

W.Lane--TFWP