USA and Europe markets are trading in red keeping in mind about FED interest rate hikes and possible high inflation numbers.
By year end there is high possibility that FED interest rate will be between 2% an 2.5% as per most of analysts.
IMF and World Bank data suggests there will not be any recession in 2023 or 2024.
But couple of fund managers are under the impression that USA may hit GDP decline in second half of 2023 or in first half of 2024.
USA Top Companies like Microsoft, Alphabet, Apple, Amazon all posted excellent quarterly results for year ending Dec-2021.
Generally when FED raises interest rates, money floating in the market will reduce and even consumption will come down a bit. This will result in control of inflation.
Mainly when demand for goods will reduce when interest rates are raised and it will help inflation to come in control.
USA is net exporters of oil. It can somehow control inflation.
But in Europe, it is net importer of oil and gas.
Europe economy will have issues related to high inflation for next 6 months to 12 months.
Dow Jones so far tumble over 260 points.
Nasdaq tumble over 2.4%.
Across Europe, stock markets are trading in red.
Even most of Asian markets corrected over 1%.
Even Russia and Ukraine war almost close to end, recovery of Russia and Ukraine economies will take 5 to 8 years to come to normal state.
Russia exports crude oil and gas products to the global nations.
Ukraine exports cooking oil and wheat to the global nations.
Even if the war is almost ended now, still the exports industry of Russia and Ukraine will hit badly for next 6 months. So this will factor in raise of inflation for another 3 months to 6 months globally.