Explained: Falling global markets and what is the new 'GST' fear

Updated : Jun 17, 2022 11:57
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EJ Biz Desk

Buckle up bulls as the bears are in the driving seat and it promises to be a wild ride down. Markets from Wall Street to Dalal Street feel the pain as central bankers globally take up the war against inflation and it may be a battle that only the market loses. There is a new phrase in town that is haunting traders 'GST' - Global Synchronished Tightening, making more costly and pushing a funding freeze across the globe. 

Also read/watch| US markets collapse, Dow sinks 700 points to year low

  • United States: Where it all started, reading of 40-year high inflation has opened the doors to multiple 'big hikes' by the Fed who is not confident the rate hikes will be enough to bring inflation down. 
  • United Kingdom: Bank of England hiked rates for the fifth time in a row as inflation soars. 
  • Swiss National Bank unexpectedly increased interest rates for the first time since 2007
  • ECB starts taking some measures, but the rate hike pushed to the end of July. 
  • Hong Kong raised rates on Thursday following Fed's third such hike this year
  • South Korea cuts growth outlook to the slowest in 3 years, cuts corporate tax to help industry 
Stock marketMarkets

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