European stocks set to retreat as bond yield spike spooks global markets

  • Technology stocks took the brunt of the pain stateside on Thursday, as the benchmark U.S.10-year Treasury yield jumped 11 basis points to break above 1.75% for the first time since January 2020.
  • Germany and France are among the countries resuming the rollout of the AstraZeneca/University of Oxford Covid-19 vaccine Friday, after British and European medicines regulators recommended it continue to be used.

LONDON — European markets are heading for a lower open Friday after a spike in bond yields reignited concerns about stock valuations and prompted a sell-off on Wall Street.

Britain's FTSE 100 is seen around 59 points lower at 6,721, Germany's DAX is set to fall by around 92 points to 14,684 and France's CAC 40 is expected to drop around 48 points to 6,015, according to IG data.

European stocks are set to receive a weak handover from Asia-Pacific, where shares mostly declined during Friday's trade following the overnight sell-off stateside.

Following its latest monetary policy meeting, the Bank of Japan announced a raft of measures that included widening the range at which the 10-year Japanese government bond yield is allowed to fluctuate from the target level to between plus and minus 0.25%.

The Bank of England kept interest rates and its bond buying program unchanged on Thursday, following the lead of the U.S. Federal Reserve with a cautious tone on the prospects for future rate hikes.

Technology stocks took the brunt of the pain stateside on Thursday, as the benchmark U.S.10-year Treasury yield jumped 11 basis points to break above 1.75% for the first time since January 2020. The Nasdaq Composite shed 3% to lodge its worst day since Feb. 25.

Futures tied to the major U.S. indexes were mixed in the early hours of Friday, as the 10-year yield mellowed to just above 1.69%.

Oil prices are also in focus after a slump on Friday, as reports of new waves of coronavirus infections and further lockdown measures in Europe dampened the outlook for crude demand.

Germany and France are among the countries resuming the rollout of the AstraZeneca/University of Oxford Covid-19 vaccine Friday, after British and European medicines regulators recommended it continue to be used following concerns over a small number of recipients developing blood clots.

On the data front, British consumer sentiment notched a one-year high in March, according to a GfK survey, with hopes for an imminent economic recovery growing, as the country seeks to emerge from nationwide lockdown measures in the coming months.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.

Source: Read Full Article