Economy

Tightening Belts on Financial Markets: October Returns

NRC·28 September · 09:20·5 hours ago

October is historically a volatile month for stock markets, marked by past crashes in 1929 and 1987. Currently, financial nerves are strained primarily by the bond market rather than equities, as investors sell US government bonds, driving up interest rates. The effective yield on the benchmark ten-year US Treasury note rose from 3.9 percent in February to 5.2 percent recently, with similar increases seen in Dutch ten-year yields. This trend impacts long-term mortgage rates. Market sensitivity remains high due to rising tech valuations. Investors await this week’s data on consumer confidence and the Personal Consumption Expenditures (PCE) price index, which the Federal Reserve prioritizes. Economists expect core inflation at 3.3 percent; figures exceeding expectations could further destabilize bond and equity markets.

Ozetta summarises; the reporting is the newsroom's

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