By David Madden (Market Analyst at Equiti Capital)

By Stuart Cole, Head Macro Economist, Equiti Capital

The brutal sell-off in US stocks last night ensured European markets got off to a very tough start this morning.

Markets have fallen back into their old habits as an increase in yields has sparked a sell-off in stocks. Equity markets experienced low volatility at the start of the week and that was because US bond yields cooled, but today the 10-year yield traded above 3%, which speed up the decline in equities.