Markets are reeling from higher rates, the world economy is next

The energy crisis is about to tip Europe into recession. (Image: Getty)

Fri, 30 Sep 2022

The world’s financial markets are going through their most painful adjustment since the global financial crisis. Adapting to the prospect of higher American interest rates, the US 10-year treasury yield briefly hit 4% this week, its highest level since 2010. Global share markets have sold off sharply, and bond portfolios have lost an astonishing 21% this year.The dollar is crushing all comers. The greenback is up by 5.5% since mid-August on a trade-weighted basis, partly because the Fed is raising rates but also because investors are...

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