Economic Snapshot: 2022 a difficult year for global financial markets
The big question for 2023 is how much damage has been done to economic growth by the higher interest rates designed to tame inflation?
Start Investing Online Today
The big question for 2023 is how much damage has been done to economic growth by the higher interest rates designed to tame inflation?
Markets were in a more buoyant mood in November, hoping the worst of the interest rate hikes may be over.
Financial markets respite from previous months on hopes that central banks may slow the pace of interest rate increases
Ongoing strength in the US economy, including higher than expected inflation, led the Federal Reserve to adopt a more aggressive stance on interest rates.
The rally enjoyed by financial markets in July came to an abrupt halt in August, with the key driver the outlook for US interest rates.
After the turmoil of previous months, markets took a more positive tone in July with both bonds and equities posting solid gains.
A combination of strong growth, abundant liquidity, supply chain blockages, and the Ukraine war triggered the biggest resurgence of inflation since the early 1980’s.
May was a volatile month for global financial markets as investors continued to grapple with the array of risks confronting them.