European shares, global stocks tumble; yields push higher amid rate-hike outlook



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European shares, global stocks tumble; yields push higher amid rate-hike outlook

On Friday, a basket of global stock indices including major European bourses had closed out the session with steep losses, as market participants seemed to be cashing in on safe-haven assets amid growing uncertainty on US Fed’s monetary policy.

In factuality, in the week’s global equity market had witnessed an upscaled volatility, as Fed Chair Powell’s utterly dovish remarks in a US Congressional hearing, had pushed equity markets higher earlier in the week, but, the market complexion changed on Friday after the US Fed Governor candidate Lael Brainard alongside other Fed policymakers had stressed on an earlier-than-anticipated rate-hike in order to tame a tormenting inflation-surge.

Apart from that, large US lenders had tumbled in the US following downbeat fourth-quarter earnings’ reports, eventually sending financial and banking stocks down in the Wall Street, while European and Asian stocks had closely mirrored the Wall Street’s outlook on a rate-hike despite an ultra-dovish stance from ECB (European Central Bank).

However, the BoE (Bank of England) is expected to rate hike in a near term.

Global stocks tumble amid increase in safe-haven bet

Citing statistics, in the day’s global equity market closure, MSCI’s gauge of global equity indices that keeps track of 49 stock exchanges across the globe, tumbled 0.36 per cent, while regional pan-European STOXX 600 shed as much as 1.01 per cent, marking off its worst week since November 26, mostly clouted by a caustic downturn in risk-sensitive growth stocks.

Besides, safe-haven assets such as US Dollar alongside US Treasury Yields climbed sharply with 10-year Treasury bond notes leaping to 1.785 per cent, heading towards a two-year peak of 1.8080 per cent hit earlier in the week.

In the Europe, London’s blue-chip FTSE 100 shed 0.28 per cent, French CAC 40 curbed 0.81 per cent to 7,143.00 and Germany’s DAX dwindled 0.93 per cent to 15,883.24, while Italy’s FTSE MIB shed 1.08 per cent to 27,543.96 and Madrid’s IBEX 35 eased 0.12 per cent to 8,806.60.

In the week, London’s FTSE 100 added 0.77 per cent, French CAC 40 lost 1.06 per cent and Frankfurt’s DAX dwindled 0.40 per cent, while Madrid’s IBEX 35 gained 0.63 per cent and Italy’s FTSE MIB shed 0.27 per cent.