New York — Stocks in world markets remained on shaky ground on Thursday, with major US stock indices falling more than 1%, as US bond yields crept back towards four-year highs. Yields climbed after the Bank of England said interest rates probably need to rise sooner, adding to expectations of reduced central bank monetary stimulus globally. US treasury bond prices have weakened in the past week and a half as investors adjusted for the likelihood of a stronger US economy and higher inflation, which could lead the Federal Reserve to boost rates more times than previously anticipated. Also underpinning yields, US congressional leaders reached a two-year budget deal to raise government spending by almost $300bn on Wednesday. While the deal was a rare display of bipartisanship that should stave off a government shutdown, it looks set to widen the US federal deficit further and could fan inflation. The move in yields kept equity investors nervous about higher rates and inflation. "There a...
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.