LONDON—World stocks fell towards fresh 2022 lows and the Japanese yen slid to levels not seen in nearly a quarter of a century on Monday as red-hot U.S. inflation fuelled worries about even more aggressive policy tightening in a big week for central banks.
The substantially higher-than-expected U.S. CPI print on Friday was hard to digest for investors, who sold both bonds and equities and quashed expectations that policymakers were starting to gain the upper hand in capping soaring prices.
With inflationary signs showing no signs of abating and new mass COVID-19 testing in China sparking concerns of more crippling lockdowns and squeezed global supply chains, investors cut exposure to risky assets….