Surging Oil Prices, Higher Bond Yields Weigh on Stocks
Brent crude jumped nearly 7% and the 10-year Treasury yield topped 4.96% as geopolitical risks and central-bank concerns pressured markets.
- On Friday, global sharemarkets slumped as soaring oil prices inflamed inflation risks, with Brent crude surging past $107 a barrel and the benchmark 10-year Treasury yield climbing toward 5%.
- Iran-Backed Houthis seized the strategic Red Sea port of Mocha on Thursday, imperiling maritime traffic through the Bab el-Mandeb Strait, a key waterway through which more than 12% of global oil transits.
- Angelo Kourkafas of Edward Jones said "it's getting harder and harder to ignore the combination of rising oil prices and higher bond yields," as long-term Treasury yields hit a new peak since 2007.
- Markets ramped up bets that the Federal Reserve will raise interest rates this month, now priced at 68% probability, while the European Central Bank raised its benchmark rate to 2.5% on Thursday.
- Analysts at JPMorgan expect eight of the nine major central banks to hike rates before year-end, as President Donald Trump claimed the war could extend beyond the November midterm elections, potentially sustaining oil price pressures.
17 Articles
17 Articles
Oil nears $110 per barrel, stocks tumble as Middle East crisis deepens
Asian stocks tumbled on Friday as oil prices rose and bond yields held near multi-year highs, with the Middle East crisis stoking supply fears and hotter-than-expected US inflation fuelling rate hike bets.
Vedanta, Vedanta Aluminium, NALCO, other metal stocks fall up to 5% on Friday. Here’s why
Metal stocks fell as soaring oil prices, rising US bond yields and a stronger dollar weighed on sentiment. Vedanta, Vedanta Aluminium, Hindustan Copper, Tata Steel and JSW Steel declined 3–5%. The US 10-year Treasury yield rose above 4.9%, its highest since 2023, as higher oil prices stoked inflation concerns and raised expectations of a potential Fed rate hike.
Global bonds fall as surging oil prices inflame inflation risks
(Refiles to remove extraneous word from headline) By Stella Qiu SYDNEY, Sept 11 (Reuters) - Global bond yields spiked to new highs and sharemarkets slumped on Friday as soaring oil prices inflamed inflation risks, sending investors scrambling to price ...
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