More losses for equities as yields rise
Investors continue to retreat from equities, as higher yields and the prospect of ongoing high interest rates cause a resurgence of risk-off sentiment, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks fall further
“The new week has picked up where the last one left off. Stocks have dropped further in trading today, as the Fed’s ‘higher for longer’ rhetoric continues to prompt a flight from risk. September’s reputation as one of the worst months for stocks will have been bolstered by the last four weeks of trading. A fresh climb in yields only adds to the stock market’s woes, as investors come to realise that when Powell says ‘higher for longer’, he really means it.”
FTSE 100 tests 7600
“Rising yields and a worsening economic outlook is a dangerous cocktail for the FTSE 100. Growth stocks like Ocado have been hard-hit as higher yields once again make stocks look less attractive, but normally-safer dividend players like Imperial Brands have come under pressure too as higher yields knock the shine off these stocks too.”
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