Markets attempt bounce today after global sell-off on Tuesday

Markets attempt bounce today after global sell-off on Tuesday

Uk and European stocks are higher this morning after global stocks followed Wall Street lower on Tuesday as rates continued climbing. Large US tech names, including Facebook and Microsoft were hit particularly hard as the benchmark 10-year Treasury yield hit a 3-month high of 1.567% raising concerns that the Fed could begin tapering its asset purchasing program sooner than expected. Asian stocks fell with Japan down more than 2%.

Sentiment wasn’t helped by comments from US Fed chairman, Jerome Powell, who said inflation could persist longer than expected. Powell, along with Andrew Bailey, Governor of the Bank of England will be speaking today at the ECB Forum on Central Banking. On Monday, Bailey said interest rates could rise before the end of the year. The UK 10-year government bond yield reached 1% on Tuesday for the first time in more than two years.

 

Disclaimer: ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy. This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’

Download Our Free Brochure