Global stocks take a beating on growing inflation angst

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Bond yields spike and dollar strengthens as rising energy prices spark fresh concern that interest rates are set to rise

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOR

US WTI crude climbed to $79.78 a barrel, while Brent rose above $83 — near a three-year high reached in the previous session — before the market turned negative during London trading hours. “Higher oil — and commodity prices in general in terms of gas and oil — are feeding through into higher bond yields, because it has an inflationary implication,” said Mike Bell, global market strategist at JPMorgan Asset Management.

The MSCI world equity index, which tracks shares in 50 countries, fell 0.5%. Its broadest index of Asia-Pacific shares outside Japan fell 0.1%.

 

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