Global Markets Face Rising Borrowing Costs

Global markets confront high borrowing costs and political turmoil as central bank rate hikes weigh on investors and households. Meanwhile, currency markets shift and upcoming elections in Brazil bring new economic focus.

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FILE PHOTO: The Federal Reserve building is set against a blue sky in Washington, U.S., May 1, 2020.

Global equities faced mounting headwinds during early morning trading as two-decade high borrowing costs and oil prices above $100 a barrel eroded risk appetite. France's political turmoil and upcoming elections in Brazil further compounded investor anxiety across major markets. Investors are recalibrating portfolios as elevated energy costs and central bank tightening squeeze global households and corporate margins.

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