Stock, bonds groggy after rout; eyes peeled on Fed

Published by
Reuters UK

By Koh Gui Qing NEW YORK (Reuters) – Global stocks and bonds gyrated in choppy trade on Tuesday after the prior day’s market rout, while investors braced for a U.S. interest rate rise this week that could be the largest in 28 years. Surprisingly strong U.S. inflation data released last Friday has fueled bets that the Federal Reserve must tighten monetary policy more aggressively to tame soaring prices. Fears that the tightening could bring on a recession walloped global equities and government bonds on Monday. Investors are now betting with near certainty that the Fed will announce a 75-basis-…

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