On Monday, global bond rates climbed and most equities dropped as rising oil costs fueled inflation fears and bolstered expectations on policy tightening.
Luxury businesses fell following the release of a Chinese presidential address pushing tax legislation, driving losses in Europe's Stoxx 600 index. Futures in the United States dropped as the S&P 500 had its best week since July. In pre-market trade, Apple dropped, while Tesla rose. As China's economy weakened in the third quarter, Asian stocks were divided.
After Bank of England governor Andrew Bailey cautioned about the need to react to pricing pressures, the global bond selloff picked up speed, with UK rates rising. In the United States, Australia, and New Zealand, where inflation surged at its highest rate in ten years, bets for rate hikes have increased. Treasury yields on ten-year notes increased to 1.6%.
