8 Apr 2022
World Stocks Headed for Weekly Plunge amid Hawkish Fed Rate Hikes
The Index Today
Global stocks are set for a weekly plummet on Friday as upcoming aggressive interest rate hikes by the U.S. Federal Reserve have stirred up investor concerns even as the dollar is on track to see its best week in a month.
According to Reuters, MSCI's broadest index of Asia-Pacific shares outside Japan remained stable on Friday by 2:30am ET. However, it is set for a weekly loss of 1.5%, while Japan’s Nikkei continued on track for a weekly dip of 2.6%. The FSTE futures and EuroSTOXX 50 futures climbed by 0.8% each while the S&P 500 futures turned flat.
This comes after the release of the Fed’s March meeting minutes on Wednesday which revealed that the central bank is prepared to raise interest rates to counter soaring inflation. An impending European ban on Russian oil imports is also set to further aggravate the economy and commodity costs.