The volatility appeared to boost demand for safe-haven bonds, with the 10-year U.S. Treasury yield dropping almost 2 basis points to 1.591% before creeping back above 1.6%. “Not a great deal of movement in other assets but equity futures hit an air pocket,” said an equity sales trader based in London. “Looking at the price action and volume, a sense the machines took over for a second and resulted in a micro flash-crash.”
Some traders initially blamed the sharp moves on a report that a Chinese military aircraft had entered Taiwan’s air defence zone, but they later discounted that as a factor as similar occurrences have been quite common recently. Europe’s benchmark STOXX 600 index also turned negative during the quick-fire selloff and was last trading 0.8% lower.
The News Highlights
- Stock markets fall with the fall of technology stocks; Yellen says interest rates may rise modestly – business lives | The business
- Check the latest Health news updates and information about health.