Stocks fall, bonds rise amid worries about growth, oil advances

Bloomberg

Stocks dropped on Wednesday on renewed worries about economic growth as monetary policy tightens in much of the world to fight inflation.
European equities fall for the first time in four days with sentiment hurt by China remaining committed to its zero-Covid-19 approach. US contracts steadied after a tech-led slide hurt the S&P 500.
The yield on German two-year debt, which is most sensitive to changes in borrowing costs, pared declines. Treasuries advanced, lowering 10-year yield to 3.15%.
The dollar extended gains after rising the most in over a week in the Wall Street session. Oil slipped toward $111 a barrel. In cryptocurrencies, Bitcoin traded near the closely watched $20,000 level.
Investors appear skeptical that the Federal Reserve can avoid a bruising economic downturn amid sharp interest-rate hikes. Evaporating consumer confidence is feeding into concerns that the US might tip into a recession.
“It seems the market is in this tug of war between on the one hand the hope that we are close to the peak in inflation and rates, and on the other hand the challenge of a slowing economy and potential recession,” Emmanuel Cau, head of European equity strategy at Barclays Bank Plc, said in an interview with Bloomberg TV. “Central banks are walking a very tight line and to a certain extent dictate the mood in the markets.”
Among individual moves in European stocks, Hennes & Mauritz AB gained after the Swedish low-cost retailer’s earnings beat analyst estimates. Just Eat Takeaway.com NV tumbled to a record low after Berenberg analysts rated the stock sell, saying the food delivery firm’s UK business will
remain under pressure.
An Asian equity index snapped a four-day climb, losing more than 1%. Insitutional quarter-end portfolio rebalancing may affecting trading.
US officials sought to play down recession risk. New York Fed President John Williams and San Francisco’s Mary Daly both acknowledged they had to cool inflation, but insisted that a soft landing was still possible.
Fed Chair Jerome Powell, European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank for International Settlements General Manager Agustin Carstens are all due to speak on a panel at an ECB forum.