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Gold prices have hit a six-month high as the equity sell-off prompts investors to look for safe havens.
Sharp share-price drops can set off moves in the credit-default swaps of banks, which add to the equity sell-off.
The sharp equity sell-off that began mid-week on Wall Street continued today as New York markets again fell sharply.
JPMorgan Chase's disclosure on Thursday night that it had lost an estimated $2 billion in a portfolio of credit investments put pressure on financial stocks on Friday, contributing to the global equity sell-off and to the bond market's momentum.
Treasury Prices Climb By Reuters Treasury bond prices surged yesterday, pushing most yields to lows for the year, as a late-day equity sell-off lighted a fire under government securities already in demand after a plunge in consumer sentiment.
Monday's global equity sell-off tripped up French banks like BNP Paribas and Societe Generale, while on Tuesday German utilities like RWE and E.ON took a tumble.
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Rumours of King Bhumibol's death last October sparked a two-day equities sell-off and a furious government witch-hunt for rumour-spreaders.
There's still no definitive justification for precisely what happened in the US last night but the general equities sell-off as contagion fears spread combined with what looks like some erroneous trade had what can perhaps be best described as disastrous consequences.
In the wake of a recent global equities sell-off, financial markets significantly scaled back bets on a September rate hike over the past month.
WHEN both bonds and equities sell off, something interesting is going on.
RBS said that following the recent equity market sell-off Sthree shares look more attractive and that "any further pull back should be treated as a buying opportunity" given the company's aggressive internationalisation plans and cash rich balance sheet.
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