World stock markets fell yesterday, with US equity indexes shedding around 1% in early trading after swinging between positive and negative territory, a day after a plunge that confirmed a correction for the market.
Benchmark treasury yields fell in volatile trading, though investors may still be wary of holding positions over the weekend.
Concerns about higher bond yields and interest rates spurred recent selling of equities, though the retreat in the market had been long awaited by investors after months of advances.
A rout in US stocks overnight, a slump in Chinese shares, and worries over rising borrowing costs and volatility took their toll on equity markets in Europe and Asia as well. A key gauge of global stock indexes was down nearly 1%.
On Thursday, the Dow Jones Industrials and S&P 500 indexes slumped more than 10% from their January 26 record highs, and volatility that plagued the market all week left investors wondering when the market’s recent slump would find a floor. European shares ended down sharply on the day and fell 5.3% for the week, their biggest weekly drop since January 2016.
FTSEurofirst 300 index lost 1.66% and MSCI’s gauge of stocks across the globe shed 1.32%. Oil prices sank as record-high US crude output added to concerns about a sharp rise in global supplies. US crude fell 3.06% to $59.28 per barrel and Brent fell 2.85% to $62.96.