Top 5 factors that may set market direction in the second half of 2022

Investors are now looking toward potential triggers that may set the likely trajectory for equity markets in the second half of 2022.

As markets complete the first half of the calendar year 2022 (CY22) with a fall of around 9 per cent, the interest-rate hike trajectory by global central banks, paired with the conundrum of inflation and growth, will move the needle for the market, observe experts.

Here’s a quick rundown on what they’ll react to over the next six months.

Interest rates

A key driver that has battered equities this year is the aggravated pace of interest-rate hikes globally, with the Russia-Ukraine offensive setting off record-high inflation levels. The US Federal Reserve (Fed) hiked rates by 75 basis points — the highest in 28