Anxiety of major players shakes the market; Massive tech sell-off

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Speculation over Keir Starmer’s future has raised fresh jitters in markets as investors dumped the pound, UK equities and long-term government bonds amid growing political uncertainty.

The price gap between Britain’s short-term and long-term debt – known as the yield curve – hit its highest point since 2018 on Thursday, in a sign that investors are losing confidence in the long-term credibility of the British economy even as the outlook for interest rates improves.

Interest rates on 10-year bonds, a key benchmark for the government’s long-term borrowing capacity, remained high, as investors weighed the prospects of a new leader with looser fiscal curbs.

“Long-term gold returns remain tied to UK political risks,” David Zahn, head of European fixed income at Franklin Templeton, told Reuters. AM City.

“While we had anticipated political risks later this year, this appears to be playing out in the economic calendar.”

Meanwhile, market jitters continued on Wall Street where big tech stocks plunged for a third straight day on Thursday as investors’ risk-off attitude led to drastic losses across software giants.

While the FTSE 100 software specialist was able to recover losses incurred in the previous session, with Sage, London Stock Exchange Group and Relx ending the session in the green, losses continued in the US.

The latest jitters were sparked by Anthropic’s new AI tool that launched earlier this week and sent jitters throughout the software market.

As stocks continue to fall, are we getting closer to the end of the AI ​​bubble?

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