The summer party in the equity markets seems to be coming to an abrupt end as hard-line central bank policymakers hover as unwelcome guests, reminding revellers than inflation still remains a big risk.
The pull-back has accelerated as worries ratchet up again about the spiral in consumer prices and indications that it doesn’t look like there will be an immediate let-up in the hiking of interest rates.
Nervousness is set to linger ahead of the key Jackson Hole meeting, as investors wait for Fed Chair Jerome Powell to illuminate a the path ahead for monetary policy.
The S&P 500 plunged by 2.14%, its worst day in two months with tech and consumer discretionary stocks the worst hit.
The NASDAQ fell by 2.5% as risk aversion seeped in and the negative sentiment has spilled over into Asia with the Nikkei also down by more than 1.2%.
Problems are mounting for the French and German economies, as a fresh snapshot of business activity shows demand has fallen due to the toxic combination of rampant inflation, rising…
