Global stocks suffered their worst one-day decline since the first months of the coronavirus pandemic in 2020 on Monday, as investors fret over signs of a slowdown in major global economies at a time when central banks are reining in stimulus measures. revival in times of crisis.
The FTSE All-World Barometer of global stocks fell 3%, its biggest drop since June 2020, and hit its lowest level since December 2020.
Worries over the rate hike were compounded by indications that growth in major global economies could slow. Chinese export growth fell to its lowest level in two years last month, data showed on Monday, following reports last week pointing to slowdowns in the German and French manufacturing sectors.
Wall Street’s blue-chip S&P 500 index fell 3.2% and the technology-focused Nasdaq Composite fell 4.3%. Europe’s regional Stoxx 600 index fell 2.9%, while China’s CSI 300 fell 0.8% and Tokyo’s Topix 2%.
Brent, the international oil benchmark, fell nearly 6% to $105.94 a barrel, reflecting concerns about weaker demand.
Natural gas futures fell even more sharply than crude oil, with the first-month Henry Hub contract falling more than 12% in the US afternoon, to just over $7 per million. British thermal units.
US government bonds initially came under selling pressure on Monday, pushing the yield on the 10-year US Treasury above 3.2%. Yields rise when prices fall. However, debt rallied later in the day, bringing the yield down to around 3.03%, down 0.1 percentage point for the day.
Learn more about today’s market movements here.