Global markets lose almost $6 trillion in Q3 due to rising interest rates and oil prices

Global markets have been rattled by rising interest rates and oil prices, resulting in world stocks losing almost $6 trillion since late July, according to a Reuters report1. The strength of the dollar has also piled pressure on the yen and other currencies, leading investors to pour money into cash due to high rates1. The equation for financial markets over the last few months has been simple and painful: a near 30% surge in oil prices + a steep rise in borrowing costs = a clattering for global stocks and bonds1.

Subplots have included Saudi Arabia and Russia cutting crude supplies and two African coups, but the main theme has been the Federal Reserve & Co continuing to crank up interest rates1. That higher-for-longer mindset has seen U.S. Treasuries and German Bunds, traditionally the main ballast in portfolios, lose between 5.5% and 6.5%, most of which has come this month1. Equity bulls have also been biffed, with world stocks losing ground1.

Key facts:

• Global markets have been rattled by rising interest rates and oil prices, resulting in world stocks losing almost $6 trillion since late July, according to a Reuters report1.
• The strength of the dollar has also piled pressure on the yen and other currencies, leading investors to pour money into cash due to high rates1.
• The equation for financial markets over the last few months has been simple and painful: a near 30% surge in oil prices + a steep rise in borrowing costs = a clattering for global stocks and bonds1.
• Subplots have included Saudi Arabia and Russia cutting crude supplies and two African coups, but the main theme has been the Federal Reserve & Co continuing to crank up interest rates1.
• That higher-for-longer mindset has seen U.S. Treasuries and German Bunds, traditionally the main ballast in portfolios, lose between 5.5% and 6.5%, most of which has come this month1.