Shares tumble and government bonds hammered by central banks’ interest rate risesFTSE 100 ends 2022 slightly up despite global turmoilInvestors are reeling from the worst year in global financial markets since the 2008 financial crisis, as inflation forced central banks around the world to raise interest rates and put an end to the supply of cheap money that has fuelled a golden decade for investors.
Global stocks have lost about a fifth of their value during the last year, as the “everything bubble” that inflated during the Covid-19 pandemic burst, sending tech shares and crypto assets tumbling.