Global equities plunge for third day on fears of economic growth

Global equities plunge for third day on fears of economic growth

BEIJING (AP) — Global stocks fell for the third day Friday after more rate hikes by the Federal Reserve and other central banks to contain ongoing inflation, fueling fears of a possible global recession.

London and Frankfurt opened lower. Shanghai, Hong Kong and Seoul fell. The price of oil fell by more than $1 a barrel. The Japanese markets were closed for a holiday.

Wall Street futures were lower after rate hikes Thursday by central banks in Britain, Switzerland, Turkey and the Philippines. The Fed raised its key rate for the fifth time this year on Wednesday, signaling more hikes to come.

“Global equities are struggling as the world expects rising interest rates to trigger a much faster and potentially severe global recession,” Oanda’s Edward Moya said in a report.

In early trading, the London FTSE 100 lost 0.6% to 7,127.70 and the Frankfurt DAX 0.3% to 12,490.55. The CAC 40 in Paris was 0.2% lower at 5,905.20.

On Wall Street, futures for the benchmark S&P 500 index and Dow Jones Industrial Average were 0.4% lower.

On Thursday, the S&P 500 lost 0.8%. The Dow fell 0.4% and the Nasdaq composite fell 1.4%.

In Asia, the Shanghai Composite Index lost 0.7% to 3,088.36 and the Hang Seng in Hong Kong fell 1.1% to 17,953.50. The Kospi in Seoul fell 1.8% to 2,290.00.

Sydney’s S&P-ASX 200 fell 1.9% to 6,574.70 and India’s Sensex fell 1.5% to 58,231.49. New Zealand and Southeast Asian markets declined.

Also on Friday, the central bank of Vietnam raised the main lending rate by as much as 1 percentage point, surprising forecasters. The State Bank of Vietnam appeared to be trying to cool inflation while discouraging capital outflows in search of higher interest rates abroad.

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