After $18 Trillion Rout, Global Stocks Face More Hurdles in 2023
- Recession, rate hikes risk spurring earnings slowdown in 2023
- Question marks remain over how Big Tech and China will fare
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More tech tantrums. China’s Covid surge. And above all, no central banks riding to the rescue if things go wrong. Reeling from a record $18 trillion wipeout, global stocks must surmount all these hurdles and more if they are to escape a second straight year in the red.
With a drop of more than 20% in 2022, the MSCI All-Country World Index is on track for its worst performance since the 2008 crisis, as jumbo interest rate hikes by the Federal Reserve more than doubled 10-year Treasury yields — the rate underpinning global capital costs.