Britain continued to remain at the heart of the bond sell-off. — Reuters
Frankfurt: Soaring government bond yields pushed European stocks lower for a second session yesterday as strong US data and likely tariffs under Donald Trump’s presidency prompted traders to price in fewer interest rate cuts on both sides of the Atlantic.
The pan-European STOXX 600 lost 0.32% as of yesterday, with retail stocks at the forefront of the sell-off.
Other economically sensitive sectors such as banks, insurers and automakers also fell.
This is as German 10-year bond yields touched their highest since July 11.
Britain continued to remain at the heart of the bond sell-off.
Its benchmark 10-year yield was seen touching a fresh 2008 high.
The British mid-cap index tumbled 0.6% to an eight-month low.
Trading volumes in Europe are expected to be lighter than usual, with US markets closed yesterday to mark a national day of mourning following the death of former president Jimmy Carter.
Carter passed away on Dec 29, 2024 at the age of 100.
Among stocks, Tesco slipped 2.7% after Britain’s biggest supermarket group kept its full-year profit outlook.
Other retail stocks in Britain such as Marks & Spencer, Sainsbury, Associated British Foods and Greggs fell between 3.1% and 9.7%. — Reuters
