Global Equities Trade Anxiously Over Economic Outlook

The rally that commenced in mid-October halted last week in the international markets as most of the bourses have grown anxious over the outlook for growth in the coming year

The fact that the world economy continues to show signs of strength is exactly what is causing concerns about economic weakness and adds a touch of irony to the situation. The reality is that the Federal Reserve’s fight against inflation is not over, as evidenced by the current elevated wage growth, strong job creation and resilient consumer spending trends, all of which suggests that this is not entirely unjustified. A decline in the economy would be the unintended consequence of further aggressive rate hikes.