Global Markets Tense as Oil Prices and US Bonds Weigh Heavily

Global markets are mixed as investors closely watch oil price volatility and US bond market trends. The Euro Stoxx 50, France's CAC 40, and Germany's DAX opened lower by 0.41%, 0.37%, and 0.49% respectively on Thursday morning.

The price of Brent crude remains higher than before the war with Iran began, at $102.22 a barrel, while US crude fell to $91.40 a barrel. The US bond market is under pressure after a strong report on the economy raised worries about inflation, causing the 10-year Treasury yield to jump to 5.10%.

The S&P 500 fell 0.8%, with the Dow Jones Industrial Average dropping 352 points or 0.7%, and the Nasdaq composite sinking 1.1%. Fed Gov. Michael Barr stated that further interest rate hikes are likely needed to bring inflation down to the 2% target.

The Bank of Japan raised its benchmark interest rate recently, but the move was largely priced in for weeks, with little impact on the yen. The US dollar edged down to 157.94 Japanese yen from 158.30 yen, while the euro cost $1.1382, almost unchanged from $1.1388.