Your Evening Briefing: The Worst Year for Global Equities Since 2008

Investors have dumped equities at a record pace in the days since major central banks signaled they won’t be deterred in their fight against inflation—a fitting end to the worst year for world stocks since the global financial crisis. Equity funds were hit by outflows of almost $42 billion, the highest ever, in a week when the Federal Reserve, the European Central Bank and the Bank of Japan all sounded staunchly hawkish notes in their policy outlook for next year, squashing bets of an imminent return to the era of cheap money. In the US on Friday, new numbers showing inflation cooling there seemed to mollify some investors, as markets rose slightly to end the week. Here’s your markets wrap.

In a blow to Viktor Orban’s far-right government, the European Union, will withhold almost all of Hungary’s €22 billion ($23.3 billion) in earmarked “cohesion” funds, aid used to strengthen economic and social conditions in less-wealthy bloc countries, until it resolves concerns over adherence to the rule of law and the protection of human rights.