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European markets fall: bond yields reach unobserved levels

22/09/2022
Categories: Index/Markets

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With bond yields reaching record levels for years, so on Tuesday 21st, the stock and bond markets were nervous.

Closed on Monday 19 because of the Queen's funeral, the London Stock Exchange fell 0.61%. In Zurich, the SMI dropped 1.32%, and Paris dropped 1.35%, Frankfurt 1.03% and Milan 1.66%. Also at the opening of the New York Stock Exchange, there was a downtrend where the Dow Jones fell by 1.01%, the S&P 500 by 0.97% and the Nasdaq by 0.52% around 15:50 GMT. Also, the yield on 10-year American government bonds was the first in 11 years at 3.57% on the bond market.

Since January 2014, the ten-year rate has reached a record of 2.48% in France. A new sharp rise in the key interest rate of the American Central Bank (Fed) is being prepared by investors who meet on Tuesday 21 and Wednesday 22 to fight inflation. The FedEx courier group (-1.97%) already had lower than expected results on Friday, and point to a slowdown in its volumes around the world.

Furthermore, in an interview Daniela Cavallo, president of the Volkswagen works council (-0.27%), told the Financial Times that the car manufacturer could sell more d& rsquo; shares in his wholly-owned subsidiary Porsche AG, which he will put on the stock exchange at the end of September.

When it came to currencies and energy, around 15:50 GMT, the euro lost 0.32% against the dollar at $0.9993. Bitcoin fell by 44% to $19,050. A level closer to its lowest in June.

After reaching a low of 169.790 euros in nearly two months, the natural gas price in Europe was worth 193 euros (+7.7%).

Oil prices were falling further amid fears of recession after approaching an eight-month low on Monday, and finishing higher. In November, North Sea Brent for delivery fell 66% to 90.47 dollars and American WTI for October delivery 2.13% to 83.90 dollars around 15:50 GMT.

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