Global stocks drop as energy crunch pushes bond yields to four-month highs

Global stocks drop as energy crunch pushes bond yields to four-month highs

Global stocks and US futures slid on Wednesday, as bond yields rose sharply on the back of a worldwide energy squeeze that's making investors worry about inflation. were down 0.89% after the index rose 1.05% the previous day. were 0.68% lower and futures for the tech-heavy were off by 1.12%. In Asia overnight, Seoul's fell 1.82%, while Tokyo's dropped 1.05% and Hong Kong's fell 0.72%. Europe's continent-wide fell 1.54% in early trading and London's dropped 1.28%. Stock markets boomed for the first seven months of the year, but have run into a rough patch in recent weeks. A number of issues are concerning investors: the threat of strong inflation lasting longer than expected; the likelihood that central banks will soon start cutting back on support; and supply-chain issues threatening economic rebounds. The International Monetary Fund said late on Tuesday the world economy is still "hobbled" by the coronavirus pandemic and global GDP growth is now likely to come in lower than its previous forecast of 6%. Global energy prices have soared in recent weeks, with suppliers struggling to keep up with a sharp rebound in demand after coronavirus restrictions were loosened in advanced economies. Natural gas prices have been hitting