Global stocks drop, yields rise; investors brace for Fed, other central bank meetings

Global stocks fell on Tuesday while the yield on two-year U.S. Treasury notes rose to almost a 15-year high as investors prepared for the likelihood of another 75-basis-point interest rate hike from the Federal Reserve.

The Fed is set to announce its decision on Wednesday at the end of a two-day policy meeting. Rate futures traders are pricing in an 81% chance of a 75 basis point hike and a 19% probability of a 100 bps of tightening.

Britain, Norway, Switzerland and Japan also have monetary policy meetings this week.

Earlier on Tuesday, Sweden’s central bank raised interest rates by a larger-than-expected full percentage point to 1.75% and warned of more to come over the next six months.

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