In short:

·         Central bankers reaffirm their hawkish intentions

·         The global economy comes under pressure from a record energy shock

·         Sentiment fades as growth prospects worsen

In short:

Markets are being driven by two interrelated risks. The first is inflation, and its implications for consumers and producers. The second is the risk of a recession – specifically whether the Fed can succeed in squashing inflationary pressures without triggering a recession.