HomeNewsNewsStocks tumble, dollar soars and bonds plunge as recession fears grow

Stocks tumble, dollar soars and bonds plunge as recession fears grow

  • Dow poised to confirm bear market
  • MSCI All-World index hits 2-year low
  • Dollar reaches new two-decade high
  • Sterling and gilts sell off after UK ‘mini-budget’

NEW YORK/LONDON, Sept 23 (Reuters) – U.S. and European stocks tumbled on Friday, the dollar scaled a 22-year high and bonds sold off again as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession.

The Dow (.DJI) narrowly missed confirming a bear market as a deepening downturn in business activity across the euro zone, and U.S. business activity contracting for a third straight month in September, left Wall Street wallowing in a sea of red.

The British currency and debt prices weakened further after the UK government announced huge debt-financed tax cuts that will boost borrowing, sending UK bond yields vaulting higher in their biggest daily increases in decades. read more

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