AFP: Global stock markets are recovering after a day of panic in the financial markets

Agence France-Presse reported that Japanese and European stock exchanges registered a recovery today after panic swept through the financial markets on Monday amid fears of inflation in the United States.

Stock market indexes fell on Monday in all major financial markets around the world, starting with a sharp decline in Tokyo, while the New York Stock Exchange closed, which is an indicator for all financial market, with a strong decline, as two of the three major indexes experienced their worst session in two years.

But Deutsche Bank analysts reported a “change in trend occurring on Tuesday” in the financial markets.

Calm returns to the markets after the anxiety that came to fruition on Friday after the publication of a report on jobs in the United States, which disappointed expectations.

Looking at a higher-than-expected unemployment rate and a lower-than-expected number of jobs created, markets feared that this was a sign of a major economic downturn in the United States due to its ‘ monetary policy adopted by the Federal Reserve.

The Federal Reserve raised key interest rates to their highest levels in twenty years with the aim of curbing the US economy and reducing inflation to 2% after reaching 9.5% annual pace in June 2022, the -his highest levels in forty years.

With the first cut in interest rates, expected by investors, markets fear that the Federal Reserve has waited too long to act, threatening an economic recession in the United States.