Global shares fell as oil prices jumped nearly 5% and US 10-year Treasury yields reached 5.33%, near a 24-year high. European stocks dropped as investors weighed sovereign debt concerns and rising borrowing costs.
Global shares slid on Thursday as sovereign bond market strains worsened alongside a jump in oil prices and reports of major technology companies seeking billions in debt financing. The pan-European STOXX 600 fell as much as 1% to its lowest since June, while Japan’s Nikkei lost 1.4% and South Korea’s KOSPI fell 2.6%.
Brent crude rose to $105 a barrel, its biggest jump in a month, while US crude added 3.2% to $91.43. The US 10-year Treasury yield climbed to 5.33%, after reaching 5.36% overnight, its highest level in 24 years. The euro traded near a 17-month low as French debt concerns spread to Italian and Greek bonds.
Reports said Broadcom was seeking $50 billion in financing, while SpaceX planned to issue $30 billion in investment-grade debt and raise $10 billion in loans to buy chips from Nvidia. Samsung projected a 783% jump in third-quarter operating profit to 107.4 trillion won, but its shares fell 2.4%.
