WS #15909
Global markets are reacting negatively to inflation data that suggests central banks may need to maintain or even raise interest rates. US inflation figures shocked markets, leading to a hawkish repricing of Fed expectations, while France also reported higher-than-estimated inflation. This macro environment is particularly damaging to high-multiple growth stocks and European equities, as seen in the sharp declines in the Nikkei and the Kospi circuit breaker trigger.
Global Macro and Rate Hike Fears
Global markets are reacting negatively to inflation data that suggests central banks may need to maintain or even raise interest rates. US inflation figures shocked markets, leading to a hawkish repricing of Fed expectations, while France also reported higher-than-estimated inflation. This macro environment is particularly damaging to high-multiple growth stocks and European equities, as seen in the sharp declines in the Nikkei and the Kospi circuit breaker trigger.