Dealers are dumping stocks this afternoon for fear that central banks will stick to their plans to keep hiking interest rates, even though economies are cooling.
Worries about rising interest rates and inflationary pressures are hitting stocks.
Fears the US economy might be heading for an actual recession have resurfaced because of the brutal New York Fed manufacturing index report.
The strong US jobs report renewed fears about further large interest rate hikes from the Federal Reserve, which is why equity markets are lower.
Stock markets in Europe mostly finished in the red due to worries about an energy shortage.
The fall in government bond yields has paved the way for a rally in stocks. Lately there has been a strong inverse relationship between yields and equities and that is playing out today.
Worries about inflation are gathering pace as the US producer price index (PPI) rate jumped to 11.3%, close to its record high.
A dip in government bond yields has paved the way for bargain hunters to swoop in and snap up European equities.
The major declines posted in US stock markets last night have set the tone for European equities today.
European stock markets are suffering as there are fears the continent is going down a gear in terms of growth.
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