London s FTSE 100 finally succumbed to this week s jitters on global equity markets, with a fall of 2.5 per cent for the blue-chip index today.
Asian and US markets had already suffered some nervers from the spike in bond yields earlier in the week. The yield on 10-year US Treasury bills powered through 1.5 per cent yesterday - its highest level in a year and up from 0.5 per cent last August.
The tech-laden Nasdaq is 6 per cent down this week and the old-economy Dow Jones followed it last night with a 2.5 per cent fall in the last two sessions..
Frédérique Carrier, head of investment strategy, RBC Wealth Management says that investors have been concerned that higher bond yields may threaten equity valuations, which are now in excess of long-term averages.
Should investors look towards value and cyclical equities as inflation fears grow? dailymail.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from dailymail.co.uk Daily Mail and Mail on Sunday newspapers.