The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.
Markets have fallen back into their old habits as an increase in yields has sparked a sell-off in stocks. Equity markets experienced low volatility at the start of the week and that was because US bond yields cooled, but today the 10-year yield traded above 3%, which speed up the decline in equities.
The mood has lightened today and that has prompted dealers to swoop in a snap up relatively cheap stocks.
Stock markets are enduring large losses due to concerns about rising inflation, higher interest rates and the war in Ukraine.
The Bank of England amplified recession fears by forecasting the British economy will contract by 0.25% next year, while at the same time, hiking interest rates by 0.25% to 1% - the highest level since 2009.
Equity markets in Europe and the US are experiencing moderate volatility as Russia announced it will cease gas exports to Bulgaria and Poland.
A perfect storm of fears about inflation, the prospect of higher rates and a lockdown in Shanghai are weighing on sentiment.
Stock markets are in the red because of the hawkish comments made by Fed Chair Jerome Powell last night, the central banker stressed the need to tackle rising inflation by hiking interest rates.
The bulls are out in force again as stocks in Europe and the US are driving higher. The absence of negative news is lifting sentiment.
Stock markets in continental Europe are under pressure as the EU announced plans to reduce its dependency on coal from Russia.
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