An index on the stocks worldwide showed that Wednesday’s session closed at a lower value by some proportion. This followed Tuesday’s trend of massive sell-offs that came about due to several reasons. For one, oil prices made a comeback, rising considerably, and Treasury yields from the US also grew.
When it comes to oil, we can look at the prices of futures of US crude oil. They managed to reach the price point of $94 per barrel, which indicates the intense speculation on oil prices. The rise of futures prices added fuel to rising prices everywhere, further contributing to inflation.
The movement of the value of 10-year treasury yields in the US was a more complex story. They initially suffered a drop to around 4.5% early on, but they managed to climb just above 4.6% by the end of Tuesday. 30-year bonds managed to climb over the 4.7% point. Meanwhile, 2-year bonds jumped over the 5.1% point.
Overall, the prices of both the bonds and the stocks have been feeling pressure. Central banks across the world are preparing to hold on to high-interest rates for a while. Some may possibly even make more rate hikes. This is all an attempt to stave off the effects of inflation.
Volatility in Global Stock Index Amidst Uncertainty
An index measuring stock performance globally showed a considerable shift in prices. Even the best day trading stocks suffered. By the end of Wednesday, the index dropped by 1.2%. This followed the start of a massive sell-off starting on Tuesday, although this index had already been dropping for seven days before this. Overall, the index has plummeted by 4.7% since the start of the month alone. This is the biggest loss the index has felt this year. Investors are wary of even the best dividend stocks.
The combination of these factors points to the uncertainty that investors are feeling right now.
