Europe stocks retreat after three-day rally as rising yields, oil prices dent sentiment
The STOXX 600 fell 0.4% as higher oil prices and widening French spreads weighed on tech and mining stocks, Reuters reported.
- European shares edged lower on Wednesday after three consecutive days of gains, with the pan-European STOXX 600 index falling 0.4% to 633.98 points as tech and mining stocks led declines.
- Oil prices climbed almost a percent as markets weighed supply constraints from a storm heading for US oil-producing regions and attacks by Yemen's Iran-backed Houthis on Saudi Arabia, pushing Brent crude futures above $101 a barrel.
- German, French, and Italian bond yields jumped as investors refocused on fiscal worries, with French spreads widening on lingering concerns about France's deteriorating fiscal situation ahead of next year's presidential election.
- UK's Pennon Group shed 15.4% after launching a fully underwritten £550 million rights issue and lowering its dividend in a bid to fix operational problems.
- German industrial output expanded 2.0 percent in August on a monthly basis, rebounding from the 1.2 percent decrease recorded in July, according to data published by Destatis.
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Channel News Asia
PressNewsAgencyEuropean shares, euro slide as energy shock, fiscal worries bite
Oct 7 : European stocks and the euro fell sharply on Wednesday as oil prices rose above $100 amid renewed Middle East tensions while concerns France's fiscal woes could affect broader debt markets continued to weigh on overall sentiment.MSCI's main world stocks index fell 0.39 per cent, while Europe's STOXX 6
The Economic Times
Times of IndiaGlobal Market: European shares fall as rising yields, oil lift risk concerns
European shares fell after three sessions of gains as rising oil prices and global bond yields weighed on sentiment, while concerns over Frances fiscal position added to pressure on markets.
The main European exchanges have opened today downwards, in the face of further increases in oil prices and interest rates on sovereign debts at almost maximum levels, which favour further increases in the principal rates.
European equities declined during today's Wednesday dealings, in conjunction with the 10-year rise in sovereign bonds in the eurozone and the United Kingdom, given investors' fears that France's fiscal fragility would infect the rest of Europe. The president of the Bank of France, Emmanuel Mulan, said that the economic situation was serious, but the country did not need [...] the pan-European stock retreat with the rise in sovereign bond returns…
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