10-year US Treasury yields, which move inversely to prices, touched as high as 1.58%, having started the year at 0.91%. Highly valued stocks, often less sensitive to economic cycles, sold off, with US technology stocks falling 3.6% over the week. In direct contrast global energy stocks rose 5.4%, supported by a further rally in crude oil prices.
As of 12pm London time on Friday, global equities fell 0.6% over the week, whilst US equities, with a high exposure to large cap technology companies, fell 1.1%. European equities, with a greater weight in economically sensitive companies, rose 1.6%, with UK equities rising 2.8%. Japanese stocks rose 1.7% and the Australian market gained 0.6%. Emerging Markets were up 0.5%, with Latin America, having a higher exposure to commodities, rising 2.5%.
Whilst bond yields rose in the US, it was notable that the same was not repeated in Europe, with the yield on 10-year German bunds falling to -0.30, and UK gilts 0.77%.
Gold fell close to 2%, now trading at $1,695 an ounce. Copper also dropped in price, falling by 1.1% to $405, but having rallied from just over $200 in March of last year. Brent crude rose a further 3.7%, now trading at $68.6 a barrel, whilst US WTI (West Texas Intermediate) rose 6.4%, taking it to $65.5 a barrel after OPEC (Organisation of the Petroleum Countries) offered no further supply despite the substantial rise in price over the past year.