Chorus Of Concern Lingers On Global Markets

September Consumer Price Index (CPI) revealed that consumer prices are still climbing at an uncomfortable rate, but global equities stayed resilient and held the tide of weakness

"Due to price hikes, energy shortages and supply chain disruptions brought on by Russia’s invasion of Ukraine, the German government downgraded its economic projections for the ensuing two years. In contrast to the earlier estimate of 2.2 per cent, this year’s output is now anticipated to be 1.4 per cent."

In the past fortnight, the inflation report added to the chorus of worries that the Federal Reserve rate hike will continue. The major indices traded largely lower due to this, as investors weighed inflation statistics and their implications for the Federal Reserve policy even as the third quarter earnings reporting season got underway. The S and P 500 index has lost almost half of its gains since its low point in March 2020. Consumer discretionary and communication services’ shares underperformed on Wall Street, weighed down by Amazon, Tesla and Meta Platform.