Global markets slide as rising oil prices and Fed rate expectations push yields higher
Global equities fell to a one-week low as surging oil prices and Federal Reserve rate hike expectations drove US Treasury yields to multi-year highs.
Global equities dropped to a one-week low as escalating crude oil prices and expectations of further interest-rate hikes by the Federal Reserve rattled financial markets. The shift in investor sentiment drove United States Treasury yields to multi-year highs, creating headwinds for international stock indices ahead of European trading.
Concurrently, energy market anxieties were heightened by reports that Iranian officials privately expressed pessimism regarding the likelihood of reaching an agreement with the United States administration before the upcoming US midterm elections. The combination of anticipated monetary tightening and geopolitical uncertainties surrounding Middle Eastern oil policy continues to exert pressure on global financial markets.
Sources: Bloomberg.