The biggest story in finance is that longer-term bond yields are rising. The yield on the 10-year Treasury, at about 4.7%, is the highest since April, even though the Federal Reserve’s overnight rate is now a percentage point lower than it was then.

British markets are among the biggest victims of a global bond selloff that has spilled over into currencies and stocks this week.

Markets see just one rate cut coming in 2025 amid strong economic data and the potential for Trump's economic plans to stoke inflation.

There’s room for stock markets to fall further as bond yields approach levels that have been painful for equities in recent years.