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.
Stock markets are in the red as yesterday’s bullish sentiment has been replaced by worries about rising inflation, and lofty oil prices.
The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.
Stock markets in Europe are pushing higher even though tensions around Russia have ticked up. President Putin has threatened to hit back at countries that are assisting Ukraine. Gas supplies into the EU are being monitored as there are some worries the energy market could become weaponised.
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