Global Stocks, Bonds Decline as Traders Weigh U.S. Election
- Bonds plunge by $1 trillion this week amid inflation wagers
- Dollar Trump-inspired surge sets off intervention across Asia
What's Driving the Selloff in Emerging Markets?
Global stocks joined declines in bonds and commodities as a selloff in emerging markets deepened with traders parsing the implications of a Donald Trump presidency for the world’s largest economy.
The MSCI All Country World Index pared its biggest weekly rally since September, the S&P 500 Index halted a four-day gain, while the Dow Jones Industrial Average hit a record high. A rout in Latin American markets extended into a third day on bets that higher U.S. interest rates would damp the appeal of riskier assets around the world. The dollar rose to its strongest level since February. Bonds continued to get pounded, with losses exceeding $1 trillion this week, and trading in Treasuries closed for a holiday. Gold and oil slumped.