The threat of the Delta coronavirus variant hit global equity markets on Monday, handing European bourses their worst session of the year and sending US stocks down 1.6 per cent.
Commodity prices also fell and investors headed for the safe haven of government bonds. It helped to push the yield on the 10-year Treasury note to its lowest level in six months, extending a shift in investor sentiment as fears over runaway inflation have given way to creeping concerns over the durability of US growth, compounded by the spread of the Delta variant.
Europe’s region-wide Stoxx Europe 600 lost 2.3 per cent in its biggest one day price fall of 2021, with London’s FTSE 100 dropping by the same amount.