LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » World News

Global stocks routed, yields rise as U.S. inflation threat spooks markets

Europe`s benchmark Stoxx 600 fell 1.5  per cent , its sixth consecutive day of losses  totalling  4.6 percent

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Global stocks routed, yields rise as U.S. inflation threat spooks markets
All major indices in Europe fell: the UK`s FTSE 100 dropped 1.4 percent, France`s CAC 40 1.4 percent and Germany`s DAX 1 percent. Image source: Reuters
Written By: Reuters
Updated: Mon, Feb 05, 2018
08:16 pm
Reuters
RELATED NEWS
HDFC Securities highlights that the next upside levels to be watched around 15430 in the next 2-3 sessions on Nifty HDFC Securities highlights that the next upside levels to be watched around 15430 in the next 2-3 sessions on Nifty
Mid-cap Picks with Anil Singhvi: Want big gains? 3 stocks to buy - Aarti Drugs, IRB Infra and Dalmia Bharat Sugar Mid-cap Picks with Anil Singhvi: Want big gains? 3 stocks to buy - Aarti Drugs, IRB Infra and Dalmia Bharat Sugar
Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities
HDFC Securities highlights that the Nifty has entered downgap area of 14919-15065 raising hopes of further upmove HDFC Securities highlights that the Nifty has entered downgap area of 14919-15065 raising hopes of further upmove
Anil Singhvi says markets will continue to remain volatile; closing above 15100 on Nifty will set stage for new highs Anil Singhvi says markets will continue to remain volatile; closing above 15100 on Nifty will set stage for new highs

Stock markets were routed around the globe on Monday, with European indexes opening lower and bond yields rising as resurgent U.S. inflation raised the possibility central banks would tighten policy more aggressively than had been expected.

Europe`s benchmark Stoxx 600 fell 1.5 per cent, its sixth consecutive day of losses totalling 4.6 percent - the biggest decline since the United Kingdom voted in June 2016 to leave the European Union. 

All major indexes in Europe fell: the UK`s FTSE 100 dropped 1.4 percent, France`s CAC 40 1.4 percent and Germany`s DAX 1 percent. 

Friday`s U.S. payrolls report showed wages growing at their fastest pace in more than eight years, fuelling expectations that both inflation and interest rates would rise more than previously forecast.

That sparked a sell-off in U.S. equities that is set to continue on Monday. Dow Jones futures pointed to the market opening 1.1 percent lower, with the S&P 500 down 0.6 percent and the NASDAQ down 0.9 percent. 

Futures markets priced in the risk of three, or even more, rate rises by the Federal Reserve this year after Friday`s data release. 

"This added fuel to a bond market sell-off, pushing US 10 year Treasury bond yields closer to the magic 3 percent level, which will only increase borrowing costs for corporates following years of cheap financing, thus ushering equities further from recent highs," said Mike van Dulken, head of research at Accendo Markets

Bond yields, which move inversely to bond prices, initially rose to multi-year highs across the globe before pulling back in later trades.

Yields on 10-year U.S. Treasury debt hit a four-year high of 2.885 percent, having jumped almost 7 basis points on Friday. They were last trading at 2.833 percent. 

German 10-year yields, the benchmark in Europe, rose to 0.774 percent, their highest since September 2015, before falling to last trade at 0.671 percent. 

FX FALLOUT
Faster rate rises by the Fed would hurt emerging markets and commodity currencies, said Deutsche Bank macro strategist Alan Ruskin.

Emerging-market currency the South African rand fell 0.4 percent, with the Chinese yuan and Polish zloty down around 0.2 percent.

Rising U.S. yields gave the dollar some support. Against a basket of currencies, the dollar was up fractionally at 89.267, after climbing 0.6 percent on Friday for its biggest single-day gain in three months.

Any rally by the dollar weakens commodities priced in the currency, with the Thomson Reuters CRB index down 0.5 percent. Gold was off at $1,335.78 an ounce after losing 1 percent on Friday.

In oil markets, Brent fell 1.36 percent to $67.66 a barrel and U.S. crude dropped 1.06 percent to $64.76. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Stock MarketsGlobal StocksAsian IndicesUS indicesDow Jones indices
RELATED NEWS
HDFC Securities highlights that the next upside levels to be watched around 15430 in the next 2-3 sessions on Nifty HDFC Securities highlights that the next upside levels to be watched around 15430 in the next 2-3 sessions on Nifty
Mid-cap Picks with Anil Singhvi: Want big gains? 3 stocks to buy - Aarti Drugs, IRB Infra and Dalmia Bharat Sugar Mid-cap Picks with Anil Singhvi: Want big gains? 3 stocks to buy - Aarti Drugs, IRB Infra and Dalmia Bharat Sugar
Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities Gold price today and much more: Consolidation likely in Rs 45200- Rs 46200 levels - Latest updates by ICICI Securities
HDFC Securities highlights that the Nifty has entered downgap area of 14919-15065 raising hopes of further upmove HDFC Securities highlights that the Nifty has entered downgap area of 14919-15065 raising hopes of further upmove
Anil Singhvi says markets will continue to remain volatile; closing above 15100 on Nifty will set stage for new highs Anil Singhvi says markets will continue to remain volatile; closing above 15100 on Nifty will set stage for new highs

LATEST NEWS

ITC Share Price: Experts give 'share to buy' tag; predicts up to 25% profit in three months

Facebook removes 1,521 malicious accounts in Feb

Mumbai-Ahmedabad Bullet Train: Tech bids open for bridge project - Check latest news development

EaseMyTrip IPO Review: Issue opens on Monday! 'SUBSCRIBE' say experts; check details like important dates, price band, lot size, many more

Gold Price Outlook: Yellow metal falls by over Rs 11,500 in last six months; may crash much more

EPF Passbook Balance Check Online: EPFO members can do this via Umang App, SMS, missed call; choose whatever you want

Andhra Pradesh trade body to promote IP rights, registration for MSMEs

COVID-19: India records 18,711 new cases

Stock Market Outlook: Anil Singhvi reveals Nifty, Bank Nifty support range, says investors should trade keeping volatility in mind

Twitter CEO and billionaire Jack Dorsey puts his 1st tweet on sale, bid reaches Rs 2 cr

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved