Global stocks decline following Wall Street losses and global bond sell-off
The declines in global markets were triggered by losses on Wall Street and deepening bond sell-offs. Meanwhile, tensions between the US and Iran pushed oil prices higher.
Global stocks dropped sharply on Wednesday as declines on Wall Street and deepening sell-offs in the global bond market took a toll. Heightened geopolitical tensions also caused oil prices to rise.
Developments on Wall Street and US Markets
On Tuesday, Wall Street's benchmark index S&P 500 fell by 0.7%, the Dow Jones by 0.8%, and the Nasdaq by 1%. In Wednesday's trading, S&P 500 and Dow Jones futures continued their downward trend.
While the overall negative sentiment in the markets also affected tech giants, Nvidia lost 1.5%, Amazon 1.9%, and AMD 2.4% in value.
Sharp Declines in Asian Stock Exchanges
In Asian markets, Tokyo's Nikkei 225 index dropped 2.9% to 64,325.64, while SoftBank Group shares lost 6.4% in value. South Korea's Kospi index declined 4% to 6,562.72 points.
Course of European Stock Exchanges
European stock markets also experienced a selling trend. In the UK, the FTSE 100 index decreased by 0.6% to 10,726.68 points, and in France, the CAC 40 index fell by 0.4% to 8,260.77 points.
Bond Markets and Exchange Rates
As the sell-off wave in the global bond market deepened, the yield on 10-year US Treasury bonds rose to around 4.81%. Meanwhile, the yield on Japan's 10-year government bond reached 3.02%, its highest level since 1996.
US-Iran Tension and Oil Prices
Following US military strikes against Iran and Iran's retaliation with missiles and drones, oil prices increased. The barrel price of Brent crude oil traded up 0.1% at $94.90.