Stocks, oil prices extend losses on recession fears

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Stock markets dropped further Friday on prospects of more aggressive rises in interest rates to fight inflation, renewing concerns over the global economy entering recession next year.

After a healthy rally in recent weeks fueled by signs that price rises were slowing, the US Federal Reserve, European Central Bank and Bank of England this week dampened the holiday cheer by hiking borrowing costs again by sizable amounts and warning of more pain.

While inflation in many leading economies has started coming down — helped by a drop in energy costs — it still remains at or near multi-decade highs.— AFP