Soaring energy costs have sunk these global sectors

This article first appeared in Livewire markets on the 21st June 2022

Supply chain disruption and soaring energy costs have combined to form a perfect storm of inflation. 

"The biggest risk on global growth and asset prices across developed and emerging markets is the outlook on energy prices," says Amit Goel, Lead-Portfolio Manager of both the Fidelity Global Emerging Markets Fund and the India Fund. 

"The world is paying the highest energy prices as a percentage of GDP."

Supply disruption, meanwhile, aren't abating - as China continues to lock down major manufacturing centres in response to COVID. 

These headwinds aren't evenly spread across markets, though. 

In this wire, Goel discusses how these pressures are flowing down to auto manufacturing, industrials, transportation and even retail.  

He also touches on the knock-on affects from the Russia-Ukraine war and how Fidelity factors in ESG considerations in light of it.