Global stocks fell on doubts of 2025 rate cuts, energy prices surged, dollar strengthened

From Investing.com: 2025-01-13 04:26:06

Global stocks fell on Monday following a strong U.S. jobs report, raising doubts about interest rate cuts this year. Energy prices surged, with oil topping $80 a barrel due to reduced Russian exports. European gas prices rose 4% in a month. China’s exports grew in December amidst U.S. trade risks. Equities in Europe dropped, with the pound weakening. Traders have reduced rate cut expectations to 25 basis points for 2025. Yields on 10-year Treasuries hit 14-month peaks. Expectations for rate hikes are rising due to high inflation. The CPI report on Wednesday will be crucial. The rise in bond yields has made debt more attractive compared to other investments. Corporate earnings optimism may be tested by increased borrowing costs. Stock futures point to more losses on Wall Street. Chinese blue chips fell 0.3% amid calls for tariffs. The dollar has reached its highest level since November 2022 against a basket of currencies. Sterling has fallen 4.4% in two months. UK gilts have been hit hard by the bond selloff. The euro weakened to its lowest since November 2022. Oil prices rose 2% due to decreased Russian exports.



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