Global stocks started the week sharply lower amid concerns about tighter monetary policy, extending a rout that halted two months of calm summer trading. Stocks and long-dated government bonds sold off Friday after comments from Federal Reserve Bank of Boston President Eric Rosengren heightened expectations for an interest rate rise later this year. The CBOE CBOE -0.79 % Volatility Index, or VIX, which tracks investors’ expectations for volatility in stocks, surged 40%. There are heightened expectations for an interest rate rise by the Fed later this year. Fed-fund futures, used by investors to bet on central bank policy, currently suggest a roughly 24% chance of a rate rise in September, according to CME Group.

Source: Wall Street Journal September 12, 2016 07:40 UTC