Global markets slide on rout in government bonds
Global markets slid on Wednesday on a rout in government bond markets on rising yields.
The benchmark US treasury yields hit fresh 16-year highs on high interest rates worries.
MSCI’s gauge of stocks across the globe shed 0.20%.
Investors across the global markets fear that high rates would slowdown the world economic growth.
US stocks
On Wall Street, stock indices ended higher on Wednesday.
The S&P 500 gained 34.15 points, or 0.81%, at 4,263.56. The Dow Jones Industrial Average rose 127.17 points, or 0.39%, at 33,129.55. The Nasdaq Composite added 176.54 points, or 1.35%, at 13,236.01.
The yield on 10-year treasury notes touched 4.884%, its highest since August 2007, while 30-year treasury yields soared above 5%.
US private employers in September added the fewest workers in more than 2-1/2 years, with private payrolls rising by 89,000 jobs, the ADP National Employment Report showed.
Currencies
The US dollar rose at 149.05 Japanese yen from 148.88. The euro rose at $1.0504 from $1.0474.
Europe
European stocks fell for a third straight day on Wednesday, led by declines in commodity-linked stocks and retailer shares.
The pan-European STOXX 600 index ended down 0.1%.
Among the sectoral losers, energy dropped 2.1% as oil prices fell by over $5 a barrel.
Miners lost 0.9% on lower metal prices.
Retailers shed 1.7%. Banks slipped 0.38%.
Britain’s FTSE 100 edged down 0.8% at 7,412.45 points. Germany’s DAX rose 0.1% at 15,099.92. France’s CAC 40 ended flat at 6,996.73.
A survey showed that the euro zone economy probably shrank in the last quarter.
Asia
In Asian stock markets, Japan and South Korea led the sharp declines on Wednesday.
Hong Kong’s Hang Seng index edged down 0.8% at 17,195.84.
Japan’s Nikkei 225 fell 2.3% at 30,526.88.
Stock markets in mainland China were closed for a week-long holiday.
South Korean benchmark Kospi closed down 59.38 points, or 2.41%, at 2,405.69.
Australia’s S&P/ASX 200 index fell 0.8% at 6943.4. New Zealand’s benchmark S&P/NZX 50 index fell 0.01% at 11235.72.
Energy prices
The US crude oil benchmark for November delivery fell $5.01 at $84.22 a barrel on Wednesday. Brent crude for December delivery lost $5.11 at $85.81 a barrel.
Bullion
Gold for December delivery lost $6.70 at $1,834.80 an ounce. Silver for December delivery fell 23 cents at $21.15 an ounce.
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Updated: 05 Oct 2023, 01:39 AM IST
