Shares have been witnessing a steep decline since 2020 as central banks stimulated markets

  • The BOJ is an outsider as the leading central banks raise rates
  • Fears of a recession among investors are mounting
  • US stocks rise; The S&P 500 increased 0.9%

LONDON, June 17 (Reuters) – Global stocks headed for the worst week since the catastrophic collapse of markets in March 2020 as leading central banks doubled their tight policy in an effort to curb inflation and keep investors focused on future economic growth.

The biggest US rate hike since 1994, the first such Swiss move in 15 years, the fifth rise in British interest rates since December and the European Central Bank’s move to raise the south in debt ahead of future hikes have all turned the markets around.

The Bank of Japan is coming out on Friday, the only week in which money prices around the world have risen, sticking to its strategy of bringing 10-year yields close to zero. read more

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Property classes, after a week of boxing moves across global stocks (.MIWD00000PUS) Friday was the equivalent of cutting weekly losses to 5.5% and leaving the index for a steep weekly weekly decline of more than two years.

Overnight in Asia, the dollar rose 1.9% to 134.70 against the yen in volatile trading, while the broader MSCI index of Asia-Pacific stocks outside Japan. (.MIAPJ0000PUS) It fell to a five-week low after being dragged out by sales in Australia. Nikkei of Japan (.N225) It fell 1.8% to a weekly fall of almost 7%.

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The S&P 500 futures are up 0.8% and the Nasdaq 100 futures are up 1.2%, although both will be underwater during the week.

“The central bank’s more aggressive tax is heading for both economic growth and equities,” said Mark Heffel, chief investment officer at UBS Global Wealth Management. “The risks of a recession are increasing as the United States reaches a smooth landing and the economy appears to be increasingly challenging.

Data from Bank of America analysts shows that more than 88% of stock indices are trading below their 50-day and 200-day moving averages, leading markets to “sell with pain”.

One way

Bonds and coins trembled after a rollercoaster week.

U.S. Labor and Housing data on Thursday showed disappointing retail figures, worries hitting the dollar and helping the Treasury. read more

Benchmark US 10-year Treasury yields fell nearly 10 basis points overnight but finally stood at 3.2200%. Yields rise when prices fall.

Southern European bond yields fell sharply on Friday after ECP chief Christine Lagarde reported more details on its plans to develop a tool to support yields.

Germany’s 10-year yield, as a measure of the euro area, last stood at 1.66%.

In recent sessions, the dollar retreated from a 20-year high, but did not fall far and finally rose 0.5%, ending the week stable against a basket of currencies.

Sterling rose 1.4% after a 25-point-to-point rise on Thursday and finally fell 0.5% as it went into a steady week. The two-year Guilds last was 2.091%.

“Despite the calm appearance in today’s markets, investors need to switch from soft to hard landing strategy, which means they need to completely change defenses or risk,” said Stephen Innes, managing partner at SPI Asset Management.

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Before prices stabilized, growth fears took a toll on low travel. Brent crude was at $ 120.40 a barrel. Bitcoin rose 2.8% to $ 20,943 while gold intraday traded down 0.6% at $ 1,848 an ounce.

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Additional Report by Tom Westbrook; Editing by Lincoln Feast, Angus Maxwan and Andrew Heavens

Our standards: Thomson Reuters Trust Principles.

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