Stock market today: World shares slide after Wall St rout driven by high yields, mixed earnings
Shares have skidded in Europe and Asia after Wall Street tumbled as bond yields tightened their chokehold
BANGKOK — Shares skidded Thursday in Europe and Asia after Wall Street tumbled as bond yields tightened their chokehold.
Germany's DAX fell 1.1% to 14,722.60 and the CAC 40 in Paris shed 0.8% to 6,860.72. Britain's FTSE 100 was down 0.7% at 7,361.04.
The future for the S&P 500 dropped 0.7% and that for the Dow Jones Industrial Average was down 0.2%. On Wednesday,
On Wednesday, the S&P 500 tumbled 1.4%, back back to where it was in May. Some of the heaviest losses hit Big Tech stocks, which dragged the Nasdaq composite to its second-worst drop of the year. It gave up 2.4%. The Dow industrials fell 0.3%.
The yield on the 10-year Treasury has nudged back up toward 5%. It was at 4.95% early Thursday after dipping to 4.82% late Tuesday.
In Asian trading, Tokyo’s Nikkei 225 sank 2.1% to 30,601.78 and the Kospi in Seoul declined 2.7% to 2,309.14.
Hong Kong's Hang Seng lost 0.8% to 16,942.93, while the Shanghai Composite index bounced back from early losses, gaining 0.5% to 2,988.30.
Sydney's S&P/ASX 200 shed 0.6% to 6,812.30. In Bangkok, the SET sank 1.4%, while Taiwan's Taiex fell 1.7%.
Rapidly rising Treasury yields have been knocking the stock market lower since the summer. The 10-year yield has been catching up to the Federal Reserve’s main interest rate, which is above 5.25% and at its highest level since 2001 as the central bank tries to get inflation under control.
High yields whittle away at prices for stocks and other investments while slowing the overall economy and adding pressure to the financial system. They tend to take the biggest toll on stocks seen as pricey or those requiring their investors to wait
Read more on abcnews.go.com
