Concerns over rising interest rates as well as China's resurgent economic situation have pushed European equity markets to a 1 -month low.
Europe’s STOXX 600 index fell 1.8%, its lowest level since mid -March while commodity stocks slipped 6% amid global concerns overshadowing relief from the French presidential election results, which saw Emmanuel Macron overtake right -wing challenger Marine Le Pen to retain his post.
Bright Morgan Stanley Chief Investment Officer Lisa Shale, the stock bounce from the first quarter correction has broken the wall of long -term interest rate hikes.
He added that the Federal Reserve's (Fed) expectation to reduce the balance sheet would make real yields close to zero from negative territory.
The MSCI benchmark global equity market fell 0.41% at 668.85 while emerging market shares were down 2.61%.
Overnight in Asia, the market saw its worst performance in a month following Beijing's Covid-19 ban.
Sources from Chinese government TV reported that Beijing residents were instructed not to leave Chatoyat province following the increase in Covid-19 cases in the area.
Meanwhile, Wall Street returned profits with news of the purchase of Twitter Inc by billionaire Elon Musk making the Nasdaq soar.
The Dow Jones Industrial average index rose 0.7% at 34,049.49, the S&P 500 hit 0.57% at 4,296.12 and the Nasdaq Composite jumped 1.29% at 13,004.85.
According to an investor at Bright Trading LLC, Dennis Dick, news on Twitter has given the ‘green light’ for investors to start buying some potential stocks.
