【今日单词】
复习一个短语： risk-off
Risk-on risk-off is an investment setting in which price behavior responds to and is driven by changes in investor risk tolerance. When investors are risk-off, money tends to flow more into less-risky assets, such as bonds.
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原文如下：
The day in the markets
by Joshua Oliver, Chris Flood and Harriet Clarfelt
(来自：The Financial Time 金融时报)
What you need to know
• Global stocks retreat sharply after gains in previous session
• Drops follow broad rally in asset prices on Bank of England intervention
• Sterling advances as the dollar loses ground against leading rivals
Global stocks and government bonds sold off sharply yesterday as caution returned to the markets after a broad rally in the previous session following the Bank of England’s intervention to support UK government debt markets.
Wall Street’s S&P 500 dropped as much as 2.7 per cent before recovering somewhat to a 1.8 per cent fall. The falls brought the blue-chip index to its lowest level since November 2020.
UK 30-year government debt, the focus of Wednesday’s emergency intervention from the BoE, rose 3 basis points to 3.96 per cent — pointing to some renewed selling in the debt.
The moves came after the BoE on Wednesday announced a new programme to buy long-dated gilts, saying the “significant repricing” of gilts could pose a “material risk to UK financial stability”.
The action by the central bank triggered a sharp rally in UK assets, which rippled into other global markets.
But yields on 10-year US Treasuries, the global benchmark for borrowing, were flat yesterday at 3.73 per cent.
Mark Haefele, chief investment officer at UBS Global Wealth Management, said he was sceptical that the more buoyant mood after the BoE’s move would “mark an end to the recent period of elevated volatility or risk-off sentiment”.
He added: “For a more sustained rally, investors will need to see convincing evidence that inflation is coming under control, allowing central banks to become less hawkish.”
The pan-regional Stoxx Europe 600 equities index fell 1.7 per cent while London’s FTSE 100 lost 1.8 per cent.
Sterling gained 1.8 per cent against the dollar to $1.1094. An index measuring the dollar against six peers slipped 0.8 per cent, reversing earlier gains.
The dollar had hit a series of fresh 20-year highs in recent months, buoyed by the relative weakness of other currencies, aggressive monetary policy tightening by the US Federal Reserve and the greenback’s traditional status as a haven in times of economic and market stress.
ING said the BoE’s action represented “the first big intervention from a G10 central bank in this cycle to avert a financial crisis. It may not be the last”.
It added: “It serves as a reminder to policymakers around the world that any perceptions by the market of a policy mis-step will be heavily punished and . . . these conditions may well be with us for the next six to nine months.”
