Stock markets around the world hit their lowest level for a year as war in Ukraine continued to hit share prices.
On another day of wild swings on the financial markets, the MSCI world equity index, which tracks shares in 50 countries, fell another 2.7 per cent.
It is now at its lowest level since March last year having lost more than 12 per cent of its value so far in 2022.
Market turmoil: On another day of wild swings on the financial markets, the MSCI world equity index, which tracks shares in 50 countries, fell another 2.7%
In London, the FTSE 100 index fared a little better, edging 0.07 per cent, or 4.63 points, higher to 6964.11, as a surge in the oil price back towards $130 a barrel boosted Shell and BP.
And while the Footsie is down nearly 6 per cent this year, other benchmarks have suffered much larger falls, with the Dax down 19 per cent in Frankfurt and the Cac off 17 per cent in Paris.
Shares have been hit as the war in Ukraine and heavy sanctions on Russia threaten to derail the economic recovery that was underway in the wake of the Covid-19 pandemic.
The soaring price of everything from food to fuel has sent inflation higher around the world –hitting living standards as households struggle with rising bills.
At the same time, growth is slowing, fuelling fears that the global economy faces a painful bout of stagflation.
Experts at Goldman Sachs warned that given Russia’s key role in the global energy market, the world could face one of the largest supply shocks ever as oil and gas exports are disrupted.
Fuelling fears of stagflation, the Centre for Economics and Business Research said it expects inflation in the UK to hit 8.7 per cent this year.
At the same time, the economy is now forecast to grow by just 1.9 per cent in 2022 before plunging into recession in 2023.
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