GLOBAL MARKETS-Stocks fall on growth concerns as the dollar maintains its rally.

GLOBAL MARKETS-Stocks fall on growth concerns as the dollar maintains its rally.

The S&P 500 and Nasdaq on Friday had posted their fifth straight week of declines — their longest losing streak in roughly a decade. The pan-European STOXX 600 index lost 2.52% and MSCI’s gauge of stocks across the globe shed 2.54%, on Monday hitting its lowest level since December 2020. Emerging market stocks lost 1.68% after MSCI’s broadest index of Asia-Pacific shares outside Japan closed 1.69% lower. Japan’s Nikkei had lost 2.53%. GLOBAL CONCERNS There appeared to be no let-up in China’s zero-COVID policy, with Shanghai tightening the city-wide lockdown for 25 million residents. With investors juggling so many worries, one place they are looking for safety is in the dollar. The dollar index, which measures the greenback against a basket of currencies, rose as much as 0.6%, hitting the latest in a string of 20-year highs. After paring gains, the dollar index was last up 0.067%, with the euro down 0.17% to $1.0533.

Concerns over increasing interest rates and a stricter lockdown in Shanghai heightened investors’ fears of a global economic downturn on Monday, as stock indexes around the world fell and the dollar reversed gains after hitting a two-decade high. Oil prices also fell. Oil prices fell as a result of continued coronavirus lockdowns in China, the world’s largest oil importer. On Monday, yields on most U.S. Treasury notes fell as bargain-hunters jumped in after the benchmark 10-year note hit fresh 3-1/2-year highs on inflation fears. Markets had a bumpy start to the week after a bruising session on Friday, when U.S. stocks sold off dramatically as another jump in long-dated U.S. Treasury yields alarmed investors. Central banks in the United States, Britain and Australia all raised interest rates last week, and investors were bracing for more tightening as policymakers fight soaring inflation. “Markets are continuing to re-price inflation risks as it becomes more evident that inflation is likely to be with us for longer than some people had hoped,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance in Charlotte, North Carolina, also citing increasing recession risks. And he said moves by policy makers around the world to raise rates higher than expected will add to economic “slowdown pressures that are already building due to the lockdowns in China and the war in Europe.” The Dow Jones Industrial Average fell 535.34 points, or 1.63%, to 32,364.03, the S&P 500 lost 102.07 points, or 2.48%, to 4,021.27 and the Nasdaq Composite dropped 399.65 points, or 3.29%, to 11,745.01.

The Japanese yen strengthened 0.21% versus the greenback at 130.29 per dollar, while Sterling was last trading at $1.2316, down 0.17% on the day. Dollar strength also put pressure on Latin American stocks and currencies on Monday. The Mexican peso lost 0.84% versus the U.S. dollar at 20.33. U.S. crude recently fell 4.35% to $105.00 per barrel and Brent was at $107.87, down 4.02% on the day. Gold prices retreated on Monday as elevated U.S. Treasury yields and a surge in the dollar to two-decade highs dented the appeal of non-yielding bullion. Spot gold dropped 1.2% to $1,860.43 an ounce while U.S. gold futures fell 0.94% to $1,863.50 an ounce.

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