MSCI’s gauge of stocks across the globe had slumped 2.32% to a new 19-1/2-month low, and the pan-European STOXX 600 index lost 2.47%.
In New York, the Dow Jones Industrial Average dropped 2.5%, the S&P 500 shed 3.3%, and the Nasdaq Composite slumped 4%.
A series of rate rises from global central banks rekindled fears that aggressive policy tightening could drag economies into recession.
The Swiss franc surged after the Swiss National Bank raised interest rates for the first time in 15 years by 50 basis points.
Swiss stocks are close to confirming a bear market pattern, having fallen about 19% since a Jan. 3 closing high.
MSCI’s broadest index of Asia-Pacific shares outside Japan ended down 0.84%, erasing earlier gains. Sterling initially plunged after the BoE’s rate announcement but recovered in New York trade. German bond yields jumped as investors ramped up bets for ECB rate hikes.
This report’s information was first seen on Reuters; to read more, click this link.