MSCI’s world stocks index shed 0.35%, while Europe’s STOXX 600 dropped significantly following a brief two-session rally.
Wall Street futures also retreated, even after artificial intelligence leader Nvidia previously pushed major indices to record highs.
Investors now fear that central banks might tighten policy further to keep inflation from remaining above official targets.
Rising energy costs fueled these anxieties, as Brent crude futures climbed toward $110 a barrel this week.
This surge in oil prices placed immense pressure on global bond markets, sending benchmark yields spiking across the globe.
U.S. Treasury yields rose sharply after several weak auctions highlighted a fragile demand for long-term government debt.
The U.S. dollar strengthened against most major peers, pushing the Japanese yen toward critical levels near 158.
Meanwhile, political shifts in Britain weighed on sterling, causing the currency to hit a one-month low against the greenback.
