លក្ខខណ្ឌហិរញ្ញវត្ថុសកលដែលតឹងតែងបំផុតចាប់តាំងពីឆ្នាំ 2020 អតិផរណាដែលដំណើរការយូរត្រូវបានគេមើលឃើញនៅលើ Horizon 

  • After the trading session on Monday, the major stocks dropped in value. The blame is being put on the ongoing Russian invasion of Ukraine.
  • According to the reports, due to the ongoing crisis between the two countries, the financial conditions have been the tightest since 2020.
  • According to the data from the morning trading session of Monday, bond markets will continue to reflect a harsh economy, adding inflation of 2.79% over the next decade.

At the end of the trading day on Monday, Wall Street has roiled once again as major stocks plunged during the day’s trading sessions. Most news outlets indicate the Russia-Ukraine war is causing a bleak outlook, and reports show strained financial conditions worldwide are currently the tightest since 2020. Meanwhile, bond markets during Monday’s trading sessions indicate increased inflationary pressures may be on the horizon.

Concerns Raised Over Worsening Financial Conditions Worldwide 

Various stocks, including the S&P 500, Nasdaq, NYSE, and the DOW, experienced a drop in their value during Monday’s trading sessions, causing frustration among equities traders. Except for this time, the blame is being put on the Russia-Ukraine Crisis instead of the pandemic. 

Military warfare has been brutal; there is no doubt. However, the Russian economy has significantly suffered from the economic sanctions put up by the EU and the West. However, economists observe that the sanctions are taking a toll on the economies worldwide. The IMF (International Monetary Fund), giving a warning, said, “economic consequences are already very serious.”

The IMF further explains that “extraordinary uncertainty” is being created due to warfare and sanctions. There are chances that inflationary pressures can be caused, supply chain disruption, and price Shocks. Reuters reported on Monday the current financial conditions are the “tightest in two years.”

On March 11, 2020, otherwise known as ‘Black Thursday’ ’was the last time that the crisis situation majorly affected markets on a global level. Rene Albrecht, the strategist at DZ Bank, noted that if inflation rises and central banks take their mandates seriously, the financial conditions could worsen. 

Impact On Bond Markets 

As per the data collected from Monday morning’s trading sessions, bond markets continue to mirror a harsh economy and added inflation of close to “2.79% over the next decade.”

In the past few weeks, bond markets have been through a phase of discontentment and extreme volatility. On March 2, Travis Kling, Ikigai Asset Management’s chief investment officer, explained that the Fed cut rates were 100bps and did three trilly of QE in six weeks; the last time bond market volatility was this much. 

Matthew Luzzetti and Deutsche Bank economists showed concern about the stable inflation and the irritability it would cause to the U.S. central bank in a March note addressed to Barron’s Alexandra Scaggs.

The crypto economy also couldn’t escape the wrath of an uncertain economy, while stocks have also been significantly down in recent times. Since yesterday, the crypto economy has significantly dropped to $1.78 trillion, losing 2.8% against the U.S. dollar in 24 hours.

ALSO READ: Blockchain in China’s car industry to reduce costs 

ប្រកាសចុងក្រោយដោយ Andrew Smith (ឃើញ​ទាំងអស់)

Source: https://www.thecoinrepublic.com/2022/03/08/global-financial-conditions-most-tightest-since-2020-long-run-inflation-seen-on-horizon/