(Bloomberg) — Stocks dropped as global markets responded to Federal Reserve commentary that was more hawkish than expected. UK government bonds fell.
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European and Asian stocks saw broad declines, while contracts on the S&P 500 pointed to a continuation of Wednesday’s losses on Wall Street.
In the UK, yields on 10-year government bonds climbed to the highest since the gilts crisis last October, when then Prime Minister Liz Truss’s fiscal plan unnerved markets. Traders are now fully pricing a terminal Bank of England rate of 6.5% by March, the highest level in a quarter century, according to interest-rate swaps data.
Tightening policy also remains an investor concern for the US. Minutes from the June Fed meeting showed division among policymakers over the decision to pause rate hikes, with the voting members on track to take rates higher this month. Traders are also looking ahead to US jobs data this week that will further illuminate the path for…
2023-07-06 02:47:50
Link from finance.yahoo.com
