Global stocks dropped Friday, tracking declines in U.S. indexes, as a selloff in bonds helped dent financier appetite for richly valued shares.
U.S. Treasury notes rose in rate, restoring some of the previous sessions losses, and futures suggested stocks in New York might support or gain somewhat in Friday trading.
Financiers said the market had been reassessing potential customers for interest-rate boosts by the U.S. Federal Reserve, in spite of assurances from Chairman Jerome Powell that the reserve bank will not raise rates anytime soon.
“What has actually taken place in current weeks is the markets have had to reprice expectations of the Federal Reserves rate walkings,” said Dwyfor Evans, head of macro strategy for the Asia-Pacific region at State Street Global Markets in Hong Kong.
He said the pickup in bond yields would have knock-on impacts on locations such as corporate financing and home loan rates.