Dhara Ranasinghe gives a glimpse at what lies ahead.

This week’s weekly loss is the largest since 2020. Futures trade indicates that stocks are not going to get any relief from their current pain.

Fears that the U.S. Federal Reserve might slam the brakes quicker than expected to control sticky inflation will continue to rule world markets.

Netflix (NASDAQ: ) is predicting a slow first quarter subscriber growth. This sent Netflix’s shares plunging 20%. It was confirmed that the correction occurred after Wednesday’s close of tech-heavy indices, which closed more than 10% below their November high. [.N]

Geopolitical risks are added to the equation, as well as rising tensions about Ukraine, it is easy to understand why bears are grabbing at the ground this morning.

European equity markets are falling sharply while Asian stocks markets have lost about 1%. The dollar and cryptocurrency are taking a beating, so there is a lot of risk on other markets.

For a moment, let’s talk about inflation: Friday data shows that Japanese inflation increased 0.5% in December compared to a year prior. It rose for the second consecutive month at the fastest rate in almost two years. This indicates an increase in inflationary pressure stemming from higher fuel prices and rising raw material costs.

Janet Yellen, U.S. Treasury Secretary, stated on Thursday that she is confident that the Fed and Biden will take the necessary steps to reduce inflation in 2022.

The sovereign bonds are the only market that is not suffering from inflation anxiety. Germany’s Bund yield has fallen below 0% while U.S. Treasury yields have dropped 5 basis points in London. Investors require a place to escape the violence elsewhere.

The following are key developments which should give more direction to the markets Friday

Meeting of top diplomats in Geneva by Russia and America on rising Ukraine tensions

Rio Tinto’s shares fall as Serbian authorities pull the plug on their $2.4 billion lithium-ion project

– UK Retail Sales Fall in December After Early Xmas Shopping, Omicron Spread

– Euro zone flash consumer confidence

ECB President Christine Lagarde speaks at Davos

– ECB bank supervisor Edouard Fernandez-Bollo

Catherine Mann, Bank of England speaks

– Emerging markets: Pakistan, Kazakhstan

– US earnings: Schlumberger (NYSE:) Graphic: S&P 500 stock index set for biggest weekly fall since late 2020, https://fingfx.thomsonreuters.com/gfx/mkt/byvrjmylyve/MB2101.png