Global markets and US government bonds hit by Chinese manufacturing slump
Global stock markets and US bonds came under pressure yesterday following sluggish manufacturing data.
Germany’s Dax fell more than 1 per cent while Europe’s Stoxx 600 fell almost 1.5 per cent.
On Wall Street the Dow Jones and S&P 500 both fell more than 1 per cent during early trading, while the tech-heavy Nasdaq was down at least 0.5 per cent.
Output slump: Germany’s DAX fell more than 1% while Europe’s Stoxx 600 fell by almost 1.5% as factory activity slumped in China and across the eurozone
Meanwhile, the worst bond rout in decades hit a new milestone yesterday with the yield on the US 10-year Treasury reaching 3 per centfor the first time since late 2018.
The moves followed figures from China’s manufacturing purchasing managers’ index (PMI), which fell to 47.4 last month, down from 49.5 in March, as China fights lockdown restrictions.
The eurozone also struggled amid rampant inflation and supply chain challenges caused by Covid and war in Ukraine.
The eurozone manufacturing PMI hit a 15-month low of 55.5 in April.