Cryptocurrencies and U.S. technology stocks hit Monday night amid a continuous flight of risk as a toxic cocktail of worries for the global economy engulfed investors.
The values of the so-called growth assets fall particularly sharply from the next day The US Federal Reserve has raised interest rates last week by 0.5% and signaled that they are expected to grow, as politicians around the world are struggling with the effects of rising inflation.
There is also growing concern that the problem of inflation, exacerbated by Russia’s invasion of Ukraine, will lead to a recession in major economies. The Bank of England warned last Thursday was a growing risk for the UK.
On Monday, the world held a wide sale, which was also facilitated by the intensified closure of COVID in Shanghai and reinforced curbs in Beijing.
Although this led to lower oil prices when Brent crude oil fell 6% due to expectations of declining demand, this meant that BP and Shell increased FTSE 100 in London by 2.3%.
Similar declines were seen in European markets, although Nasdaq-focused Wall Street fell 4% at the end of trading.
Analysts said this meant U.S. stocks were going on course to achieve the lowest price level in more than a year.
This year, investors are taking money from loved ones of the pandemic era amid fears they are overvalued when faced with easing health care restrictions in the West and rising interest rates.
Cryptocurrencies have also experienced great pain.
According to Refinitiv, bitcoin, which peaked at $ 69,000 last November, has since collapsed to trade at just over $ 30,000 as of Monday night. This is more than 15% less than on Friday.
The FTSE 100, which outpaced most global stock markets this year after it lagged behind the overall recovery of values during 2021, on Monday again came under pressure on its strong list of mining components.
It fell just over 2% for the year, while the Nasdaq lost a quarter of its value.
As most of its member companies are export-oriented, the UK’s top flight index was less prone to a response caused by Bank of England updates when it warned of inflation above 10% by the end of the year and the possibility of a recession ahead. .
Instead, the pound felt most of the pain – reaching lows against a stronger dollar, which was not from the first days of the pandemic, about $ 1.22. It is also three cents lower against the euro last week.