Global Stocks
European stocks slid Monday, with investors fleeing risky assets as the markets confronted the prospect that interest rates will be raised in the U.S. this month. Monday's selloff followed Friday's slide of 1.1% for the pan-European index. That drop came after Boston Federal Reserve President Eric Rosengren said a "reasonable case can be made" for raising interest rates in the U.S. A rate hike could hurt appetite for European assets as investors search for higher-yielding investments in the U.S.
U.S. stocks rallied Monday, finishing near session highs and taking back a chunk of Friday's losses, after Federal Reserve Gov. Lael Brainard called for prudence in raising interest rates. Investors were grappling with the prospect of the Federal Reserve tightening monetary policy following a series of hawkish comments from central-bank officials last week.
Asian shares rebounded Tuesday as fears of a rate increase by the U.S. Federal Reserve that had built up in recent days eased following dovish comments overnight from Fed Gov. Lael Brainard. She said that caution by the central bank concerning a rate rise "has served us well in recent months, helping to support continued gains in employment and progress on inflation."
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