Global stocks slide as traders bet on more hikes
BNN Bloomberg
Stocks fell with bonds on signs that central banks will keep driving up interest rates to tame inflation.
Europe's Stoxx 600 index sank the most in two weeks. Contracts on U.S. gauges signaled further losses on Wall Street after Wednesday's Federal Reserve commentary stoked worries that officials will resume tightening policy.
In the U.K., yields on 10-year government bonds climbed to levels last seen during the gilts crisis in October. Traders are now fully pricing in a peak Bank of England rate of 6.5 per cent by March, the highest in a quarter century. Concern about mortgage affordability also dragged down shares of homebuilders such as Persimmon Plc and Vistry Group Plc.
Stocks are losing ground after a strong first half of the year as continued hawkishness from central banks damps hopes of a soft landing for the global economy. Minutes from the Fed's June meeting showed division among policymakers over the decision to pause rate hikes, with the voting members on track to take rates higher this month.
