They fear high inflation and the impact of central banks' monetary tightening. The conflict in Ukraine and lockdowns in China are also weighing on sentiment.

After an initial rally last week when the Fed ruled out a 0.75% rate increase in the near future, markets took a plunge as investors assessed the impact of the 0.5% hike, as well as the central bank's aggressive policy to reduce its balance sheet.

The Bank of England also raised rates, and warned of slow growth ahead. The MPC voted by a majority of 6-3 to raise the Bank Rate by 0.25pp, to 1%, in line with expectations.

Among stocks today, Melrose Industries is showing the biggest increase, up 5%, after Barclays reiterated its overweight rating. It is followed by Aviva Group with 4%. Defensive utility and pharmaceutical stocks are among the biggest fallers.

 

Things to read today:

Emerging Markets hit by “Toxic” mix of rising rates and slower growth (Financial Times)

Uber Plans to Cut Costs as Investors Tech Optimism Recedes (WSJ)

Macron, EU to Push Orban to Drop Veto Threat on Russian Oil Ban (Bloomberg)