Stock Market: Global Risk Aversion is Heating Up
European stocks pan-European Stoxx 600 index fell 1.2% in early trading, of which technology stocks fell 3.2%, and most major stocks fell.
At the same time, US stock futures also underperformed. Nasdaq 100 futures expanded to 2%, while S&P 500 futures fell 0.8%. Bitcoin has experienced a dramatic decline. In the past 10 hours, it has fallen by more than US$7,000 and retreated to around US$45,000, with a 24-hour drop of about 15%.
In European countries, Germany’s DAX index fell 2%, France’s CAC40 index fell 0.7%, Italy’s FTSE MIB index fell 1.5%, and Britain’s FTSE 100 index fell 0.7%.
European Central Bank President Christine Lagarde said on Monday that the central bank is “closely monitoring changes in long-term nominal bond yields.” Her remarks lowered the yield of European sovereign bonds.
On the other hand, the rise in US Treasury yields has turned moderate and has fallen below 1.36%.
US Federal Reserve Chairman Jerome Powell will release semi-annual securities in the Senate on Tuesday. His comments on interest rates and inflation may affect the subsequent stock market trends.
Stock Market Outlook - /10