Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
Stocks have fallen out of favour with investors due to the rise in bond yields. The US 10-year yield is now 3.77%, which is a major rebound because earlier this week it was 3.6%.
Stock markets are still benefitting from the chatter the Federal Reserve might look to ease up on the pace it is hiking interest rates.
US stocks are driving higher due to the weaker-than-expected manufacturing data as traders are taking the view that bad news for the economy is good news for the stock market.
Stock markets in Europe closed higher today following a difficult week, as the drop in UK, German and French bond yields supported equities.
Stock markets are being clobbered as fears of further interest rate hikes are prompting traders to cut and run.
Sterling remains the talk of the town as the Bank of England purchased long-dated gilts as a way of keeping yields under control.
Traders were in risk-on mode for much of the European session as the fears that have been hanging over markets recently faded a little.
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