Wall Street stocks and treasury yields were in decline from their peak as investors took cues of hawkish comments by U.S. policymakers on economic growth.
The 2 -year treasury yield is expected to make the biggest monthly jump since 2004 amid investor sentiment that is optimistic about the implications of rising yields on stock market valuations, with more people opting to buy back.
US 2 -year treasury yields fell 4.8 basis points at 2.107% and 10 -year treasury yields fell 7.6 basis points at 2.301%.
On Wall Street, the Dow Jones Industrial average index fell 448.96 points or 1.29% at 34,358.5, the S&P 500 lost 55.41 points or 1.23% at 4,456.2 and the Nasdaq Composite was down 186.21 points or 1.32% at 13,922.60.
Shares in Europe fell 1% with the pan-European equity benchmark initially excellent, declining afterwards as investors took profits.
MSCI's broad index benchmark of world stocks fell 0.9%.
According to Mark Haefele, chief investment officer of UBS Global Wealth Management, investors are still in the process of digesting rate hikes and stocks.
He added that it is too early to say that the Federal reserve (Fed) is not open to negotiations to reduce inflation without affecting growth, therefore, it is more appropriate for investors to choose heavy weights and less selective to produce an overall neutral allocation to equities.
Meanwhile, market strategist JPMorgan said the recent rebound in the market was due to investors ‘looking for unpleasant Fed hawish signals’ from the flat rate curve.
As for the currency, the Yen rose 0.25% against the dollar but remained at 121 Yen after Bank of Japan (BOJ) governor Haruhiko Kuroda said it was too early to discuss ultra -loose monetary policy.
The Euro and Sterling declined 0.25% and 0.4% respectively.
Summary on the commodity market, Russian President Vladimir Putin has launched a campaign of payment of Moscow energy resources in the form of Rubles to ‘unfriendly’ countries, referring to countries imposing sanctions on Russia.
US crude was up 4.71% at $ 114.42 a barrel and Brent was up 5.1% at $ 121.37.
Gold prices rose on investor concerns about inflation, the situation in Ukraine and an increase in US bond yields.
Spot gold added 1.3% at $ 1,946.44 an ounce.
