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Recession fears drag on euro and crude, Asian markets mixed

  • Sun Online Desk
  • 7th July, 2022 08:59:07 PM
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Recession fears drag on euro and crude, Asian markets mixed

Crude extended the week's losses Thursday, while the euro struggled to recover from 20-year lows and equities were mixed as recession fears continued to cast a pall across trading floors.

Expectations for a contraction in some of the world's leading economies, including China, where a new Covid-19 flare-up has generated angst, have increased in recent weeks owing to central bank interest rate hikes aimed at taming decades-high inflation.

The surge in inflation has been caused by soaring energy costs and rising post-lockdown demand, but observers said concerns about a contraction -- along with signs that consumers were being put off by high prices – were weighing on the oil market.

Both main contracts were down more than one percent Thursday and have fallen about 10 percent this month. They are now below $100 for the first time since April.

Data on Wednesday showed US demand appeared to be waning as stockpiles rose, confounding expectations for a drop, while there are also some concerns that the China outbreaks -- including another spike in Shanghai -- could see major cities put into lockdown again.

Still, Vandana Hari, of Vanda Insights, said prices would likely rebound.