Global Markets See Worst Fall Since 2022, Stocks Swing As Oil Nears $108 & Bond Yields Rise To 4.42%
· Free Press Journal
Mumbai: Global markets are going through a very uncertain phase, where every day brings new twists. Sometimes fear of war pulls markets down, and sometimes a positive statement brings temporary relief. Recently, the US extended the ceasefire deadline with Iran by 10 days, giving markets a short breather.
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Shock Triggered by Middle East Conflict
At the end of February, sudden attacks in the Middle East shocked global investors. Markets were not prepared for such developments. Even though talks were ongoing, the situation changed quickly, leading to heavy selling across markets.
Stocks fell sharply, and even safe assets like gold and silver saw a major drop. In fact, gold recorded one of its biggest declines in decades, with little buying support at that time.
Worst Month in Three Years
By March, global stock markets were heading towards their worst performance since 2022. The MSCI All Country World Index was on track for its weakest month in three years.
However, the extension of the ceasefire deadline by US President Donald Trump brought some relief. US stock futures rose by 0.5 percent, and European markets also showed signs of recovery. Asian markets remained weak but limited their losses to around 0.5 percent.
Oil Prices Add Fresh Worries
The situation became more complex due to rising oil prices. The Strait of Hormuz, a key global oil supply route, is nearly blocked. This has pushed Brent crude prices close to USD 108 per barrel.
Higher oil prices mean higher costs for everything, increasing inflation concerns worldwide.
Rising Yields Signal Tough Times Ahead
Investors now fear that central banks may not reduce interest rates anytime soon. Instead, rates could remain high or even increase.
This is reflected in bond markets. The US 10-year bond yield has risen to 4.42 percent, while Japan’s 2-year yield is at its highest level since 1995. Australia and New Zealand are also seeing rising yields.
Markets in ‘Whipsaw’ Mode
Markets are now moving sharply up and down, reacting to every piece of news. While gold has risen about 2 percent as investors look for safety, Bitcoin has fallen below USD 69,000.
Asian markets have dropped nearly 10 percent this month, and crude oil has surged about 48 percent since the conflict began.
Uncertainty Remains the Biggest Factor
The biggest issue for investors right now is uncertainty. Questions about the war, oil supply, and future prices remain unanswered.
Until there is clarity, markets are likely to remain unstable, moving between fear and hope.