FTSE 100 hits two-month low as stock market sell-off deepens – business live

Dow Jones industrial average tipped to fall 300 points, as shares slide in Asia and EuropeUK services sector growth hits 16-month lowFTSE 100 fell sharply at the openAnalyst: Shares could fall 10% – but it won’t be a crashUBS: Don’t panic!Markets are being hit by fears of interest rate risesBonds hit by inflation worries 1.41pm GMT Stock markets around the world took another pummelling on Monday as investors continued to fret over rising U.S. bond yields.“We’ve seen a sharp increase in U.S. bond yields over the last week after the Federal Reserve released a more hawkish than expected statement (on Wednesday), alongside its monetary policy decision, and the jobs data reported a significant increase in earnings.”“Markets now have three rate hikes this year more than 50 percent priced in and some people are even anticipating a fourth, which is unusually ahead of current Fed forecasts.” 1.17pm GMT The pound is also having a bad day. It’s currently down 0.5% against the US dollar at $1.4045, a one-week low.GBP going down like a homesick mole. #vonhintenmitAnlauf pic.twitter.com/iuaK195AQH Related: Brexit: May accused of ‘ideologically-driven madness’ after she rules out any customs union – Politics live Continue reading…
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