European shares dip as bond market sends worrying signals
London: European shares opened slightly lower on Wednesday, with most sectors except financials in the red as concerns grow over the direction of the bond market after the 10-year U.S. Treasury went above 2.55 percent for the first time since March 2017.
The STOXX 600 index fell 0.3 percent with all major bourses trading in negative territory. Germany’s 10-year bond yield hit its highest level since an October European Central Bank meeting, when policymakers first announced the extension of its bond-buying scheme.
“Calls for a slightly negative open can be attributed to Asian equities losing steam despite another quartet of Wall St records, as some call a bear market for bonds (yields up, prices down) and a market turnaround”, Accendo Markets analysts told their clients.
“Have we finally entered a bond bear market?”, Rabobank also asked this morning, while DNB noted that “yields weigh on dividend sectors”.
Banks gained as higher interest rates typically generate more revenues and profits for lenders.
RBS rose 2.5 percent, Deutsche Bank was up 2 percent and HSBC added 1.5 percent.
Energy stocks also added a few points to the index as oil prices stayed robust due to production cuts and a fall in U.S. inventories.
Senior Congress leader Digvijay Singh today criticised Maharashtra Chief Minister Devendra Fadanvis for cancelling his visit to Pandharpur on the occasion of 'Ashadhi Ekadashi' in view of a proposed protest by Maratha groups demanding reservation.
Goldman Sachs-backed ReNew Power has received markets regulator Sebi's approval to float an initial public offering.
The Supreme Court today extended till August 8 the stay on a Gujarat trial court's proceedings on the criminal defamation complaint filed by Jay Shah, son of BJP president Amit Shah, against news portal 'The Wire' and its scribes for allegedly writing a defamatory article.
Home Minister Rajnath Singh today said the central government is open to further review of the GST rates of different items as it has just reduced taxes of 88 consumer-centric products such as refrigerators, washing machines and sanitary napkins.
Euro zone consumer confidence was unchanged in July from June, indicating economic growth may be stabilizing going into the third quarter, figures released on Monday showed.
The station, which was named after Lord Elphinstone, the Governor of Bombay Presidency from 1853 to 1860, has now been renamed in honour of a local deity.
Lavasa -an ultimate getaway, a city that would offer the charms of European locales, with five star comforts in a scenic part of Maharashtra has now become an abandoned town.
A second chargesheet by the ED has confirmed the trail of illegal cash Mallya transferred to his accounts across global tax havens.
Delayed payment by GMR-led DIAL, the Delhi airport operator, to the CISF guards could eventually lead to passengers paying more to fly out of the Indian Capital.
The West Bengal Police has claimed to have busted a Rs 100 crore plus job racket in the Indian Railways following a crucial arrest in the Indian Capital.