Global Markets Roiled: Currency Tensions and Bond Selloff Create Economic Uncertainty

Global stocks decline as government bonds face pressure and the U.S. dollar hovers near a yearly high. The pound suffers a significant drop, raising concerns over Britain's finances. Inflation worries and uncertainty around U.S. economic policies under Donald Trump contribute to rising bond yields globally.

On Thursday, government bonds faced significant pressure while the U.S. dollar maintained its position near a one-year high, spurred by declining global stocks. The British pound experienced its most considerable three-day drop in nearly two years amid a global bond selloff, particularly affecting gilts and driving yields to 16.5-year highs.

Investor anxiety centers around rising inflation and decreased chances of reduced interest rates. Added to this is the uncertain economic policy direction from U.S. president-elect Donald Trump, alongside potential new debt sales, collectively driving up global bond yields.

European stock markets opened lower, though they stabilized later, with the FTSE 250 slightly down. Comments from investment experts highlight the global and not solely British nature of this economic uncertainty, as the world anticipates the implications of Trump's potential tariffs and economic decisions.

(With inputs from agencies.)