Business · Markets · 5 hrs ago

Oil price surge rattles global stocks as eurozone debt fears grow

Oil price surge rattles global stocks as eurozone debt fears grow

Global stock markets fell as oil prices rose on Thursday, amid conflict in the Middle East and concern about eurozone government debt.

Brent crude climbed 3% to $112 a barrel, a level last seen in the early months of the war with Iran.

The rise followed intensified attacks on Saudi Arabia by Iran-backed Houthi forces and raised concerns that energy costs could fuel inflation and hurt economic growth.

China's CSI 300 fell 1.8%, leaving it down 20% since June, while major European markets also dropped.

Investors sought safer US and German government bonds, while French and Italian bonds faced further selling.

The extra yield on French bonds compared with German bonds reached about 1.7 percentage points, its highest level since the 2011 eurozone debt crisis.

The sources describe continuing market pressure and say investors expect European Central Bank support is not imminent; they do not give a specific next step.

3 sources

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What people are saying

Deutsche Bank analystsAnalysts
The market mood overnight has clearly become more negative.
via Asharq Al-Awsat
Rohan KhannaHead of European rates research at Barclays
It is a perfect storm: we have an energy inflation story and a fiscal and political problem.
via Expansión
Michael HartnettBank of America analyst
We will continue to adopt a tactical risk-off stance until mid-November.
via Al Eqtisadiah
Ulrike Hoffmann-BurchardiChief investment office at UBS
AI demand remains strong, current bond yields provide attractive income, and geopolitical developments alone do not justify taking a broad investment stance.
via Al Eqtisadiah