Neil Wilson, Saxo UK investor strategist, describes the global markets as being driven by a deepening bond selloff, itself driven by higher energy prices and mounting fiscal risks from governments under pressure to shield consumers.
This has intensified inflation concerns and dented risk appetite, Wilson notes.
He added that the move is chiefly about the energy shock and its transmission to the real economy, citing stalled talks over the Strait of Hormuz, an underwhelming Trump‑Xi meeting and policymakers facing voter pressure that risks larger budget responses.
Wilson points to concrete signals that have spooked markets, with Brent back above $100, the US 30‑year Treasury hitting 5.16% (its highest since 2023), April CPI at 3.8% y/y and PPI up 6.0%, UK 30‑year gilts at 5.877% and 10‑year gilts at 5.2%, a rout in tech and chips (Intel, AMD, Micron down c.6%), a dip in the FTSE 100 and weakness in precious metals such as gold at its lowest since March.
He warns that Nvidia’s earnings on Wednesday will be a crucial test for market sentiment and that G7 finance ministers meeting in Paris today will be watched for any policy reaction.
