London — World stocks started the week in the red Monday as the dollar touched a 7-month high and US and European government bond yields — the main driver of global borrowing costs — climbed to their highest since June. Riskier assets have had a difficult few weeks, undermined by concerns about a potential rise in US interest rates, the outcome of US elections, Britain’s departure from the EU and the health of German and Italian banks. China and Hong Kong had pulled Asian stocks lower overnight and Europe fell early on as weak-looking updates from media group Pearson and Norwegian seafood company Marine Harvest added to nervy signals from bond markets. US treasuries pushed past 1.8%, German Bund yields hit their highest in four months ahead of a European Central Bank (ECB) meeting on Thursday, while Brexit worries ensured another jittery start for UK gilts. Despite the specifics, all the moves came amid signs that inflation is finally starting to wake from its slumber and that top c...
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