AWARDS
Global stock markets were poised for their worst streak of losses in over two months, as growing inflation concerns pushed bond yields higher, putting pressure on equities and encouraging investors to reassess valuations after a record-breaking rally.
The MSCI All Country World Index lost 0.2%, posting its fourth consecutive day of decline, while the company's Asia-Pacific index fell 1.2%. South Korea's Kospi, a key indicator for AI-related investments, fell nearly 2%, with Samsung falling after its union announced a strike. Futures suggest losses will extend to Europe and the United States.
The price of Brent oil remained at $110 a barrel, with no sign of the Iran crisis easing. This has fueled inflation fears, putting pressure on government bonds around the world. Yields on 30-year Treasury bonds have soared to levels not seen since 2007, amid concerns that rising energy costs could force the Fed to raise interest rates instead of lowering them.
Global markets have retreated from record highs after investors for weeks brushed aside concerns about the Middle East conflict, preferring to trust that spending on artificial intelligence will continue to drive corporate earnings growth. Attention has now shifted to Nvidia's quarterly results, due Wednesday, with investors increasingly questioning whether the AI-driven rise has gone too far, too fast.
In Asia, Chinese President Xi Jinping welcomed Russian President Putin to Beijing on Wednesday for talks aimed at strengthening bilateral ties and advancing a long-stalled energy project. Singapore also overtook Indonesia to become the largest stock market in Southeast Asia.
