Concerns about rising interest rates and the prospects of a global slowdown remain.
Author: Austin Ramzy
Published: 2022-09-27 02:15 am
Markets Calm Down After Recession Fears Drive Steep Drops
www.nytimes.com

Concerns about rising interest rates and the prospects of a global slowdown remain.

  • Send any friend a story

    As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.

(image)
A trader in Seoul on Tuesday.Credit...Ahn Young-Joon/Associated Press

Asian markets were mostly flat on Tuesday after days of worrisome economic news and tightening interest rates had driven down shares around the world.

The Nikkei in Japan climbed 0.83 percent, while South Korea’s Kospi composite index was down 0.39 percent. While the Hang Seng Index in Hong Kong was down 0.8 percent. Oil futures were up less than 1 percent.

The Shanghai composite index was little changed. Reuters reported that Chinese market regulators had asked brokers to help stabilize domestic stock markets ahead of an important Communist Party congress next month.

Investors are concerned about the increasing likelihood of a recession, as central banks continue to raise interest rates to contain inflation. Several central banks including the U.S. Federal Reserve and the Bank of England said last week that they would raise rates. More countries are expected to follow this week.

“It’s looking very clear now that the major central banks are not going to blink in bringing down inflation at the cost of growth,” said Rob Subbaraman, head of global macro research at Nomura.

Analysts have said that recession appears more likely for the United States, Europe and Britain in the coming quarters. “I’m more worried about Europe than the U.S. in terms of the depth of the recession,” Mr. Subbaraman added.

In Britain, the pound fell to an all-time low against the dollar on Monday before recovering slightly. Markets continued to be roiled by a British government plan released Friday that would focus on tax cuts to spur growth.

The fall in the value of the pound and rising yields on British bonds indicates that the market has lost confidence in the government’s plan, ANZ Research said in a report.

“The question of credible policy delivery lies at the heart of GBP weakness,” it added, referring to the pound. “Maintaining market confidence amid the current sell-off in global financial assets and U.K.’s rising financing requirements is crucial.”

Read Full Story

‘Washington Crossing the Delaware’ Will Be Sold at Auction

www.nytimes.com - 7 months ago
It’s a smaller version of the giant painting at the Met in New York, and it hung in the White House for years. Christie’s thinks it could sell for at least $15 million next month.
Read More

Wonking Out: Money Isn’t Everything

www.nytimes.com - 1 year ago
No, not even in macroeconomics.
Read More

Myanmar’s Health System Is in Collapse, ‘Obliterated’ by the Regime

www.nytimes.com - 8 months ago
The country is also now one of the most dangerous places in the world to be a medical worker. At least 30 doctors have been killed since the coup, a rights group says.
Read More

Reading the Zoom Tea Leaves

www.nytimes.com - 1 year ago
Companies are starting to make big bets on how we’ll all behave after the pandemic ends.
Read More