US stocks slide as 30-year yield rises to July 2007 levels

"30-Year US Treasury yields rising to levels last seen in July 2007 put pressure on stock indices with the S&P 500 on track for a third straight negative day", says Axel Rudolph, Chief Technical Analyst at investing and trading platform IG.

Stocks slide as yields, energy prices rise

European stock indices began the day on a strong footing, adding to Monday's solid gains on hopes of de-escalation in the Middle East, but were dragged down by their US peers. These came under pressure after the US 10-year Treasury yield rallied to a 16-month high and the 30-year yield to levels last seen in July 2007. High energy prices, a pick up in inflation and robust economic backdrop increased bets on the Fed hiking rates this year, putting pressure on stocks. Yields rose globally with Japanese borrowing costs hitting record highs and those of long-dated bonds in the UK rising towards 1998 levels.

Oil and Gas prices rise further still

The initial drop in oil and gas prices as US President Trump apparently held off on Iran strikes was followed by a rise in crude as Iran didn't confirm that talks between the two nations are taking place. The US dollar - which initially weakened - added to last week's gains and hit a six-week high amid headlines proclaiming that Nato may consider a Hormuz deployment if the Strait is not open by July.