DEVELOPING: Global markets fall sharply on worries about rates, economy
around the world aggressively hiked interest rates this week in hopes of undercutting high inflation, with more big increases promised for the future. But such moves also put the brakes on their economies, threatening recessions as growth slows worldwide. Besides Friday’s discouraging data on European business activity, a separate report suggested U.S. activity is also still shrinking, though not quite as badly as in earlier months.
Even gold fell in the worldwide rout, as bonds paying higher yields make investments that pay no interest look less attractive. Meanwhile, against other currencies. That can hurt profits for U.S. companies with lots of overseas business, as well as put a financial squeeze on much of the developing world.
Treasury yields have climbed to multiyear highs as interest rates rise. The yield on the 2-year Treasury, which tends to follow expectations for Federal Reserve action, rose to 4.20% from 4.12% late Thursday. It is trading at its highest level since 2007. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.68% from 3.71%.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global markets fall sharply on worries about rates, economyThe S&P 500 is now at the lowest point of the year and has shed all its gains from 2021. The Dow Jones Industrial Average is 20% below its record set early this year.
Read more »
Stocks slump on Wall Street as Fed steps up inflation fightStocks closed sharply lower Wednesday after the Federal Reserve made another big interest rate hike and sharply increased its outlook for how high it expects to raise rates in coming months.
Read more »
U.S. oil prices drop over 5% to their lowest since January on recession fearsOil drops sharply Friday, with U.S. prices down more than 5% to their lowest since January, as recession fears grip financial markets, sinking global stock...
Read more »
Investors fear 'ship has sailed' on soft landing with risk of fed funds headed for 5% in 2023“Our view is that a fed-funds rate of 4% is about the highest that the economy would be able to withstand,” said Mark Haefele of UBS Global Wealth Management.
Read more »
10-Year Treasury Yield Falls as Markets Digest Fed Rate Hike, Look Ahead to PMI DataThe yield on the benchmark 10-year Treasury fell on Friday as markets adjusted to the Fed’s rate hike and attention turned toward September flash PMI data.
Read more »
Could we be heading toward a global recession?Our San Diego Econometer considers predictions of a shock to the global economy.
Read more »