S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico MarketThe UK 10-year gilt yield jumped 16 basis points to about 4.722%, the highest level in five months, as investors sharply revised expectations for Bank of England interest rates following the surge in global energy prices. Oil has climbed above $100 per barrel as escalating tensions in the Middle East disrupted supply and halted shipping through the Strait of Hormuz. Because the UK is highly sensitive to energy costs feeding into inflation, markets quickly shifted their rate outlook. Only a week ago, investors expected around two rate cuts from the Bank of England this year, but those expectations have been reversed. Traders briefly priced in as much as 16 basis points of rate increases by year-end, instead of the 8 basis points of cuts expected previously. Markets now see a meaningful chance of a rate hike later this year and roughly a 20% probability of a hike as early as June.
