Once again, the rise in government bond yields is acting as the catalyst for the sell off in stocks.
The British pound has witnessed phenomenal volatility today as it plunged in overnight trading, then it staged a miraculous recover during the day, but it turned lower yet again.
The British pound is taking a hammering as the new Chancellor of the Exchequer, Kwasi Kwarteng, announced tax cuts to stimulate the economy.
It has been a very volatile 24 hours as we have heard from several central banks.
All eyes are on the Fed and the central bank is expected to hike interest rates by 0.75%.
Traders are in risk off mode as central banks are in focus this week. The Swedish central bank lifted rates by 100% rates today, and the Federal Reserve and the Bank of England are expected to deliver large rate hikes tomorrow and on Thursday, respectively.
Gold traded at its lowest mark in two years as pressure mounted on the yellow metal.
The US released several economic announcements today and the bulk of which were well received, and that added to the view the Federal Reserve will stick to their course of hiking interest rates at an aggressive pace.
US stocks have pulled back some of the ground they lost last night as US PPI cooled to 8.7%, from 9.8%.
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