ASX and stocks around world fall as US Fed hints at bigger rate hikes if inflation persists

Stocks are sliding globally, including in Australia, as the US Federal Reserve hints at steeper rates hikes as soon as the war in Ukraine eases.

ian economy is also battling price hikes, however the Reserve Bank only this week decided to keep rates at historical lows for a while longer.

“USD fluctuated modestly as market participants digested the FOMC’s March meeting minutes,” CBA’s analysts said.

“AUD/USD dropped below its pre RBA level and is trading near 0.7510. 

“Weaker oil and equity prices weighed on AUD.”

Meanwhile, there are jitters about China’s economy, with the entire city of Shanghai under another COVID lockdown. That’s as the major financial hub battles 13,000 cases of the virus daily.

“China’s COVID-zero policy leaves Shanghai still locked down with cases rising still, and nerves fraying about further spreads and more sweeping lockdowns,” OANDA analyst Jeffrey Halley said in a briefing note.

“China’s Caixin Non-Manufacturing PMI slumped to 42.0 in March from 50.1 in February