Power play: India to reduce its dependence on Middle East oil

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European stocks hit their lowest level in a week on Tuesday as higher government bond yields hit high-growth tech stocks, with further signs of a slowing Chinese economy weighing on sentiment. investors.


The pan-European STOXX 600 index was down 1.3%, falling for a third session as a surge in US Treasury yields signaled investors bracing for higher rates and the risk of persistent inflation.

Global stocks also fell for the third day in a row, as bond yields on both sides of the Atlantic soared amid concerns about when central banks might raise interest rates.


The MSCI All Country World Index, which tracks stocks from 49 countries, fell 0.3% the day after trading in Europe began.

The UK FTSE 100 index fell 0.5%, while the German DAX fell 0.8%. The French CAC 40 fell 1.1% and the Italian FTSE MIB index slipped 0.6%.


Tech stocks fell 3.7% to a one-month low after their Wall Street peers fell overnight. They are particularly sensitive to rising interest rate expectations because their value relies heavily on future earnings, which are more strongly discounted when rates rise.


Meanwhile, data showed profit growth for Chinese industrial companies slowed for a sixth month in August, with the ongoing electricity crisis becoming a growing threat to production and profits.


“The pandemic situation is still not resolved. The Chinese economy is slowing and the authorities have yet to stimulate vigorously. The Fed is preparing to normalize its policy. And the debt ceiling showdown is underway,” BCA Research analysts wrote in a note.


“Heightened uncertainty combined with high speculation suggests that the near-term path will be bumpy.”

As the benchmark STOXX 600 is poised to extend its quarterly winning streak, a volatile September shone its third quarter gains as investors consider risks to soften global growth momentum and tighten monetary policies.


However, a rally in Brent crude futures above $ 80 a barrel continued to support energy stocks, with the oil and gas index rising 0.9% to new highs since February 2020. .


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