Global Market: European Shares Slide as Surging Bond Yields Hit Risk Appetite
Banks led losses as the STOXX 600 fell 1.4% and the U.S. 10-year Treasury yield hit 5.3168%, reviving higher-for-longer rate bets.
- On Thursday, European shares started the final quarter of the year on a downbeat note as investors turned risk-averse, with the European STOXX 600 falling 1% to 628.1 points by 0720 GMT, its lowest level since mid-September.
- Global bond yields surged in recent weeks as investors sold government debt, while soaring energy costs fueled inflation concerns and the AI boom bolstered the economic outlook, reinforcing bets that interest rates could remain higher for longer.
- All European sub-sectors declined, with banks down 3.2% and miners down 2%, while France's CAC fell 1.4% as investors assessed the path of borrowing costs.
- Zealand Pharma slumped 8.8% following trial results for Boehringer Ingelheim's obesity drug, while Gamma fell 2.6% after Dutch private equity firm Waterland dropped its takeover offer.
- Germany's 10-year government bond yield touched 3.6526% earlier this week, its highest level since June 2009, while European unemployment stood at 6.4% in August as factory growth hit its fastest rate in more than four years.
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18 Articles
European equities retreated today Thursday, on the first quarter of this year, amid investors' reluctance to take risks.
European stocks start quarter lower as global yields hit multi-year highs
The Economic Times
Times of IndiaGlobal Market: European shares slide as surging bond yields hit risk appetite
European shares opened the final quarter lower as elevated global bond yields and persistent inflation concerns weighed on investor sentiment. The STOXX 600 fell 1%, with banks among the biggest decliners. Higher energy costs and expectations of prolonged interest rates pressured equities, while softer oil prices offered limited relief to markets.
European stocks started the final quarter of the year with losses today, as investors avoided risk-off moves. Bond yields worldwide are at multi-year highs. Most European sector indices were down The pan-European STOXX 600 index fell 1% to 628.1 points at 10:20 Greek time, its lowest level since mid-September. Most European sector indices were down, with banks recording the most losses.
The rise in interest rates is taking investors off this Thursday. European stock markets have opened up in decline on Thursday, against the backdrop of a continuous rise in interest rates.
In the first trades, around 7:10 GMT, Paris gave in 0.56%, Frankfurt 0.48%, Milan 0.49% and London 1.10%.
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