Shock Swiss rate hike sets markets on edge ahead of BOJ

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Reuters UK

By Tom Westbrook SINGAPORE (Reuters) – World stocks on Friday headed for their worst week since markets’ pandemic meltdown in March 2020, as investors feared sharp rate hikes tipping economies into recession, while growth fears and a soaring Swiss franc whacked the U.S. dollar. A shock 50 basis point rate hike from the Swiss National Bank overnight sent the franc on its sharpest rise in seven years, forced an unwind of carry trades and set off a new round of worry that rising global rates will snuff out growth. It has also left the Bank of Japan utterly lonely in its low-rate settings, stoking…

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