In a report published on Monday, Fitch Ratings noted that the global fiscal recovery in 2021 that followed the COVID-19 shock slowed sharply, affected by higher commodity prices and rising inflation, per Reuters. 

The publication noted that the global fiscal recovery is expected to continue to slow in 2022 and 2023 amid increasing borrowing costs, slowing real GDP growth and the war in Ukraine. "Policy interest rates are rising, and Fitch believes this marks an end to an era of very low government borrowing costs," the report further read.

Market reaction

The market mood remains relatively risk-averse during the European session with the US stock index futures losing between 0.1% and 0.5%.