Dhara Ranasinghe gives us a look at what lies ahead for the markets.

The markets have settled down after an exciting ride. But Friday 13 is a lucky day, so those who are prone to superstition might be excused from being cautious.

You can see why this week’s volatility in all asset classes is so troubling. Consider the euro. On Thursday, the currency suffered its largest drop in one day against the US dollar since March 2020. This dropped more than 1%.

The is expected to record a sixth consecutive week of declining, despite gaining some ground on Thursday. This would be the first time the U.S. stock market index has done this in more than a decade. Deutsche Bank (ETR:) says.

There’s also the devastation in the crypto currency market, which has suffered large losses even though bitcoin is back up to $30,000.

There is a lot to think about, to be honest.

The root cause of the problems in the region, and across all risk assets is the concern about rising inflation and interest rates, and whether it will lead to a difficult landing for the global economy.

U.S. Federal Reserve Chair Jerome Powell said Thursday the battle to control inflation would “include some pain,” repeating his expectation of half-percentage-point rate rises at the next two policy meetings.

It’s likely that investors will have time to review the wild week ahead, as data is quiet for today. There is also potential for volatility.

After Moscow placed sanctions on European Gazprom subsidiaries (MCX), the pressure is growing in Europe to find alternative sources of gas.

On Thursday gas prices soared, the benchmark European benchmark rising 12%. This was because buyers felt uneasy about the growing threats to Europe’s supply due to its dependence on Russia.

It’s one of the many headwinds that world markets are facing.

S&P 500 set for a sixth straight week of falls https://fingfx.thomsonreuters.com/gfx/mkt/zdpxoglxgvx/stx1305.PNG