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Asian stocks, crude bounce from losses but recession fears linger
The euro clawed its way back slightly after hitting parity with the dollar for the first time in two decades, though it remains under pressure from growing concerns about an energy crisis across the eurozone and the European Central Bank's slower pace of monetary tightening.
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Volatility looms: Pedestrians walk past a stock indicator board showing share prices of the Tokyo Stock Exchange (left) and the New York Dow (right) in Tokyo on Tuesday. Tokyo stocks opened lower on Tuesday, extending losses on Wall Street, as investors looked ahead to meetings of the United States and Japanese central banks. (AFP/Kazuhiro Nogi)
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sian stocks fought back Wednesday to recover some of the losses suffered at the start of the week, while oil also bounced from a rout, though recession alarms continue to ring loud.
The euro clawed its way back slightly after hitting parity with the dollar for the first time in two decades, though it remains under pressure from growing concerns about an energy crisis across the eurozone and the European Central Bank's slower pace of monetary tightening.
Traders are also awaiting the release of a series of key indicators this week, including the all-important consumer price index later Wednesday, with expectations for another increase to a fresh 41-year high.
Another big spike in prices will reinforce the Federal Reserve's determination to lift interest rates 75 basis points for a second successive month in July, adding to concerns that officials could go too far and tip the economy into recession.
Still, Lauren Goodwin of New York Life Investments said policymakers were unlikely to shift from their hawkish tilt for now.
"This is widely expected to be a really strong print," she told Bloomberg Television.
"Even if it is not, I don't think that changes the Fed's perspective in a couple of weeks. We won't have enough evidence that inflation is convincingly turning over."
