Global financial markets brace for a bumpy ride in 2022

Soaring inflation, rising interest rates and further supply chain disruption will fuel volatility, economists say

Financial markets are poised for a bumpy ride in 2022 in the face of soaring inflationary pressure, rising interest rates and ongoing disruption to international supply chains caused by the Omicron variant of coronavirus, experts have said.

Analysts and financial investors said Omicron's emergence had raised the prospect of a stagflationary start to the new year, with weaker levels of economic growth despite intensifying price pressures in already stretched supply chains. The winter energy crisis will also weigh on Europe's economies.