The European stock index rose, but then fell, It decreased by about 1% by late morning. Stocks Europe 600 rose 1.2% after rising 1%, expanding losses for the sixth straight day. The index was the lowest since March 2021. The UK’s FTSE 100 fell 1% and Germany’s DAX fell 0.9%.
“Investors are just reassessing global risk,” said Bruce Pan, a Hong Kong-based analyst at China Renaissance Securities. “They want to play it safely.”
On Tuesday, government bond yields receded from recent highs. Yields on 10-year US Treasury bonds fell to 3.30 percent. Yields jumped to 3.36%, the highest since 2011, as stock prices plummeted the day before.
At the same time, cryptocurrencies continued to decline in a series of market crashes. On Monday, the experimental crypto bank, Celsius Network, frozen withdrawals and panicked depositors. Bitcoin has fallen to its lowest level since 2020, according to CoinMarketCap. By early morning in New York, it had fallen 7% in the last 24 hours.
Investors are trying to understand what is happening in the world economy.
The World Bank issued a harsh warning last week that many countries would find it difficult to avoid a recession. On Monday, credit rating agency Fitch lowered its global gross domestic product (GDP) 2022 forecast from 3.5% in March to 2.9%. These are the latest in a series of global economic downgrades, and Russia’s protracted war in Ukraine has already expanded the world’s supply chain, disrupting trade and pushing up prices for oil, wheat, metals and other necessities. I am.
Central banks around the world, from Australia to Canada, are moving to raise interest rates amid rising inflation. On Thursday, the Bank of England is expected to raise its benchmark rate for the fifth consecutive meeting. Last week, the European Central Bank announced next month that it would raise interest rates for the first time in more than a decade.