London — Stock markets were routed around the globe on Monday, with European indices opening lower and bond yields rising as resurgent US inflation raised the possibility central banks would tighten policy more aggressively than had been expected. Europe’s benchmark Stoxx 600 fell 1%, its sixth consecutive day of losses totalling 4.1% — the biggest decline since the UK voted in June 2016 to leave the EU. All major indices in Europe fell: the UK’s FTSE 100 dropped 1%, France’s CAC 40 0.8% and Germany’s DAX 0.6%. Earlier, MSCI’s broadest index of Asia-Pacific shares outside Japan shed as much as 2%, its largest daily drop since late 2016. It was last down 1.5%. Friday’s US payrolls report showed wages growing at their fastest pace in more than eight years, fuelling the expectation for both inflation and interest rates to rise more than previously forecast. That sparked a global sell-off that continued on Monday. Futures markets priced in the risk of three, or even more, rate rises by ...
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.