Why are stock markets so volatile right now?

Interest rate hikes, recession fears and inflation have spooked investors

Listen | 44:07

A board displays the chart of Germany's share index DAX at the stock exchange in Frankfurt am Main, western Germany, on June 15, 2022. - Europe's equities rebounded as the European Central Bank began an emergency meet to discuss volatile eurozone bond markets and soaring inflation, while investors also braced for a major US rate hike. (Photo by Daniel ROLAND / AFP)

Wed Jun 22 2022 - 06:00

Last week markets worldwide wobbled as investors fretted about a recession and aggressive monetary tightening by central banks.

In addition, cryptocurrencies have slumped this year leaving many people nursing big losses.

So, is this just a blip, or is there something more fundamental going on?

“The bad news is that this volatility we’re seeing in the markets at the moment is going to continue. It may not be as volatile, but volatility is going to be there,” says Aidan Donnelly, head of equities at Irish stockbroker Davy, in the latest episode of The Irish Times Inside Business podcast.

He joins Ciarán Hancock, Cliff Taylor of The Irish Times and Irish Times Washington Correspondent Martin Wall to discuss what is behind the latest market jitters and what it might mean for the Irish economy.