Oil Surge and Big Tech's Cash Crunch Roil Global Markets

Global markets took a hit on Thursday as oil prices surged above $100 a barrel and earnings reports from two US 'Big Tech' companies showed they are burning through cash at an alarming rate. Alphabet's free cash flow turned negative for the first time since the company went public over 20 years ago, while Tesla's FCF turned negative for the first time in two years.

The oil price increase, combined with rising natural gas prices in Europe and a strong US jobs report, sent bond yields soaring. Two- and 10-year US yields are now at their highest levels in 18 months, while the 30-year yield is close to a new post-2007 high.

The European Central Bank kept interest rates on hold on Thursday, but markets expect a rate hike in September. Rates traders are pricing in around 75 basis points of tightening over the next year or so, which could have significant implications for the euro zone economy.