London — World stocks were in their biggest two-day dive in six months on Tuesday and commodities were also jammed in reverse, as rising US borrowing costs cooled financial markets’ euphoric start to the year. The move above 2.7% by US treasury yields — the benchmark for world lending rates — helped the dollar off the canvas, though that was part of the issue. Oil slid back below $70, metals buckled, and Asian stocks saw their biggest fall since early December after Wall Street suffered its largest drop in five months after worries about Apple’s iPhone sales. Despite an easing of yields in Europe its stocks duly followed. The pan-regional STOXX 600 dropped 0.5% as traders took aim at cyclical sectors, such as mining and financials after their strong run this month. "The big picture view is that the rising US yields have finally come to the dollar’s rescue," said Société Générale strategist Alvin Tan. "It didn’t respond for weeks, but as yields have broken above 2.7%, it finally has....
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.