Stocks tumbled, with the benchmark index of global equities sinking the most in 19 months, and bonds fell around the world after the Federal Reserve said it may phase out stimulus and China’s cash crunch worsened. Gold led commodities lower as the dollar rallied for a second day.
The MSCI All-Country World Index (MXWO) lost 3 percent, the most since November 2011, and the Standard & Poor’s 500 Index sank 1.6 percent at 10:32 a.m. in New York. The 10-year Treasury note yield rose two basis points to 2.38 percent after reaching 2.47 percent, the highest since August 2011, as rates surged from New Zealand to Germany. Emerging-market assets fell with India’s rupee and Turkey’s lira touching record lows. The S&P GSCI gauge of raw materials slid 2.8 percent, the most since September, as gold sank below $1,300 an ounce for the first time since 2010.
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