Sep 15, 2016

Global stocks struggle for footing after bond slip

World stocks steadied at two-month lows on Thursday though bond markets stayed firmly in the red, as eight years on from the collapse of Lehman Brothers two of Europe's top central banks prepared to keep their interest rates pointing down.

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Europe's main stock markets in London, Frankfurt and Paris dipped in and out of positive territory as the region struggled to pull out of a five-day losing streak.

Primarily it has been caused by nagging concerns that having resorted to previously unthinkable measures like negative interest rates and mass money printing, top central banks are now running out of options to get economies going.
Euro zone bond yields crept up again in early deals as the real power driver, the 10-year U.S. Treasury yield climbed back past 1.71 percent which lifted the dollar against the yen, euro and pound.


A man looks at an electronic board showing the Japanese yen's exchange rate against Euro outside a brokerage in Tokyo, Japan, July 6, 2016. REUTERS/Issei Kato

REUTERS
By Marc Jones | LONDON