G10 currencies enjoyed some reprieve against the US dollar this week, although stocks have endured another brutal selloff.

Markets are set to remain gripped by the effects of soaring inflation on companies’ bottom lines and on the performance of major economies.

US equities tumbled on Wednesday as they suffered their worst day since the early months of the pandemic in June 2020. The benchmark S&P500 fell 4% with 98% of stocks declining.

It’s a new week but the same old story for financial markets as global growth concerns and inflation fears leave investors on edge.

The mighty dollar kicked off the week in a shaky fashion despite crossing above 105.0 last Friday, its highest level since December 2002!

The market adage “Sell in May and go away” has certainly rung true in 2022.

The selloff across bonds, stocks, and even cryptos has taken a steeper dive so far this month, amid worries that central bank rate hikes could choke the global economy.

The S&P 500 is set to drop further when US markets open today, potentially marking a 5th session of losses over the past six.

This blue-chip index is down almost 18% from its record high set on January 3rd this year, almost meeting the threshold for a ‘bear market’.

Global sentiment brightened on Wednesday with equities rebounding after a rally in technology companies helped reverse most of the losses on Wall Street overnight.

Asian equities remained under pressure on Tuesday as the massive sell-off across financial markets left investors bloodied and worried. Although European futures are pointing to a positive open despite the overall market caution, the lack of appetite for risk may cap upside gains. Mounting fears around rising interest rates and slower global economic growth hammered global sentiment yesterday, with risk assets feeling the burn.

The past few weeks have certainly not been kind to gold.

After almost kissing the psychological $2000 level back in mid-April, bulls ran out of steam – allowing bears to drag the precious metal to prices not seen since February 2022!