Equities were mixed on Friday after their worst quarter since the early days of the pandemic as traders assess the impact of the war in Ukraine and the Federal Reserve’s plans to fight surging inflation by ramping up interest rates.

And oil extended a sell-off following Thursday’s plunge in response to news that the United States would release a million barrels a day from its reserves as it looks to rein in a price rally fuelled by Russia’s conflict.

Investors suffered a torrid first three months, with markets across the planet first plunged into turmoil over central bank moves to tighten policy and reel in their COVID-era financial support measures, and then by Russian President Vladimir Putin’s invasion of Ukraine.

Inflation had already rocketed to multi-decade highs in several countries before the war in eastern Europe exacerbated the problem as crucial crude supplies from Russia were slashed and sent its price to six-year highs above $100. The developments came as profit-takers cashed out after a near two-year rally fuelled by central bank and government largesse.

Despite a pick-up in recent weeks, most indexes finished the quarter in the red. Traders are struggling to ascertain the outlook for the next three months, with the war showing no signs of ending and the Federal Reserve just getting started on its campaign of sharp rate hikes.

The second quarter of 2022 “is going to start as messily as the first quarter has finished, with markets buffeted by a multitude of strong winds from various directions, with the outcome no clearer for the future than ever,” said OANDA’s Jeffrey Halley.

And Anwiti Bahuguna, at Columbia Threadneedle Investments, told Bloomberg Television that a lowering of growth forecasts for the United States, Europe and China are “something to watch very carefully”.

The upcoming earnings season will be closely watched to see what impact higher inflation and the war has had on firms’ bottom line and their forecasts for the year ahead.

The release of US jobs data later in the day will be closely followed for an idea about the state of the world’s top economy.

The release of US jobs data later in the day will be closely followed for an idea about the state of the world’s top economy

All three main indexes on Wall Street finished more than one per cent down but Asia ended mixed after a poor start.Tokyo, Sydney, Seoul, Taipei, Manila, and Wellington were all down but Hong Kong finished higher thanks to a late rally while Shanghai, Mumbai, Singapore, Jakarta and Bangkok were also up. London, Paris and Frankfurt also rose in morning trade.

Oil prices shed more than one per cent, extending a selloff on Thursday that saw West Texas Intermediate lose seven per cent after Joe Biden announced he would release up to 180 million barrels over six months. The US benchmark was trading below $99.

The president described the move as a “wartime” measure that will defuse Russia’s leverage as an energy power. However, while the move to ease a global supply crisis was welcomed, commentators warned it would only be a stopgap and could not be a long-term solution.

“It is worth keeping in mind that 180 million barrels is approximately nine days of US demand,” said SPI Asset Management’s Stephen Innes. “And while one million barrels per day is better than nothing and can help balance the four million a day lost from Russia for about six months, what happens after?” He added: “Markets are still tight, but six months could be a meaningful lifeline and reduce the chances of (more than) $150 oil.”