Fidelity International

It is 14 years since the Fed and other central banks ushered in an era of ultra-low interest rates and bond yields in response to the Global Financial Crisis.

As the Federal Reserve attempts to get a grip of soaring inflation in the US, the dollar’s appreciation has sucked capital away from other regions.

Inflation has dogged markets this year and is likely to remain high, bringing an end to the era of easy money and increasing the risk that overtightening by central banks will trigger a sharp recession, an ‹inflation bust›.

Bond yields are finally starting to look attractive again but are they priced for the scale of the downturn ahead?

We expect a high degree of volatility and uncertainty for global equities in 2023, as stubbornly high inflation and interest rate rises lead to a rough landing for large parts of the global economy.

We expect a high degree of volatility and uncertainty for global equities in 2023, as stubbornly high inflation and interest rate rises lead to a rough landing for large parts of the global economy.

Inflation has dogged markets this year and is likely to remain high, bringing an end to the era of easy money and increasing the risk that overtightening by central banks will trigger a sharp recession, an ‹inflation bust›.

It is 14 years since the Fed and other central banks ushered in an era of ultra-low interest rates and bond yields in response to the Global Financial Crisis.

The European Central Bank’s 75 basis point hike in October may be its last jumbo move as the threat of recession looms large over the Euro Area.

Markets have seen significant moves following the end of the Communist Party Congress but the week’s events leave a more nuanced picture.