World shares slid to their lowest level in more than a month and emerging markets fell for the fourth straight day on Tuesday, as concerns about an expected cut in U.S. stimulus and related gains in bond yields escalated.
U.S. stock index futures, however, signaled a steadier tone ahead on Wall Street – after major indexes posted their longest losing streaks of the year on Tuesday – helping drag many markets off their lows. .N .DJI
Europe’s main stock markets .FTEU3 were down 0.8 percent by midday, near a two-week low, while emerging stocks .MSCIEF fell 1.3 percent to trade at a five-week low, though both indexes had recovered slightly during the morning session.
The selling has been the result of rising expectations that the U.S. Federal Reserve will start winding down its $85 billion-a-month support program next month. The prospect has driven up bond market borrowing costs, which in turn has sparked a move away from the riskier assets that have soared over the last few years thanks to the extra liquidity.
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