World stocks head back towards 2-year lows as mood remains sour By Reuters

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*GLOBAL STOCKS DROP BACK TOWARDS 2-YEAR LOWS AS MOOD SOURS -

LONDON -World stocks headed back towards their lowest levels in almost two years on Tuesday, with sentiment weighed down by unease about rapidly rising interest rates, an escalation in the Ukraine war and China stepping up pandemic measures.

Wall Street was tipped to open lower, judging by trade in U.S. stock futures. And MSCI's world stock index was down 0.5% -- moving back towards roughly two-year lows hit last week. Exacerbating global growth worries was news from China that Shanghai and other big Chinese cities have ramped up testing for COVID-19 as infections rise, with some local authorities hastily closing schools, entertainment venues and tourist spots.British government bond or gilt yields edged lower, having soared on Monday, following the BoE's latest efforts to shore up the battered bond market.

Treasury yields pulled back following the BoE announcement but 10-year yields were still up around 5 basis points higher at around 3.93%.

 

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