Global stock market selloff deepens as investors flee to safe havens | Real Time Headlines

Investors turned to safe-haven assets on Monday as a global stock market sell-off intensified after weaker-than-expected U.S. jobs data at the end of last week.

this Disappointing jobs report Stirring investor concerns about the Fed made a mistake Keeping interest rates unchanged last week signaled the world’s largest economy was heading toward recession.

The stock sell-off was also fueled by volatility in some major earnings reports and a hawkish tone from the Bank of Japan, which fueled speculation: Popular Japanese Yen “Carry Trade” Already collapsed in the short term. A “carry trade” occurs when an investor borrows money in a currency with a low interest rate, such as the Japanese yen, and reinvests the proceeds in a currency with a higher return rate.

on Monday, Swiss franc USD/USD rose 1.7% to 1.186 Dollarthe highest level since January this year.

U.S. Treasury yields, which move inversely to prices, extended their losses. 8:50 a.m. ET, yields 10-Year Treasury Bond It fell 11 basis points to 3.681%. this 2-Year Treasury Bond The yield last traded at 3.68% after falling 20 basis points to a nearly two-year low. The rate of return is Japan 10-year government bond At the same time, it plunged 21 basis points to 0.741%.

This buying contrasts sharply with the selling on the stock market. U.S. stock futures fell early Monday Dow Jones Industrial Average Futures It fell 1,150 points, or about 2.9%. S&P 500 Index Futures and Nasdaq 100 Futures Decreased 4% and 5.4% respectively.

Japanese stock market confirms entering bear market Reach Asia overnight. The Nikkei fell 12.4% to close at 31,458.42 points, its worst day since “Black Monday” in 1987. Decline.

In Europe, regional Stoke 600 The index fell 3.3%, with losses across all sectors and major regional exchanges. Technology stocks fell as much as 5% before recovering slightly to fall 4%.

“When you look at the labor market report in more detail, I think there are some legitimate concerns about whether it’s actually as weak as it’s been stylized to be,” Shavlik told CNBC’s “Squawk Box Europe” on Monday. Shavlik added, Recent U.S. data It is still likely that the Fed will cut interest rates by 25 basis points in September rather than opt for a larger rate cut.

Shavlik went on to say that the yen’s sharp swings cannot be ignored, while stock market volatility is exacerbating further developments as investors scramble to reposition themselves.

“We’re in a position now where market moves drive market moves,” Shavlik said.

“When you look at people holding certain positions, those positions become imbalanced because the market moves in the other direction. If they move that much, then on top of that, (volatility) is will spike, and you’ll take a significant (value at risk) hit.

The Vix index, which measures market volatility, jumped to its highest level in nearly four years on Monday.

“That forces people overall to reduce their positions,” Shavlik continued. “Obviously, they have to sell in a market that’s already down, or buy Treasuries in a market that’s up. And then that’s self-reinforcing.”