European markets retreated Thursday morning as rising bond yields again sparked concern over global equities.
The pan-European Stoxx 600 lost 0.7% in mid-morning trading, with core resources falling 3.9% as most sectors fell to the red. Public services overcame the downward trend to 0.6%.
European stocks received a weak Asia-Pacific transfer, where Japan’s Nikkei 225 and Hong Kong’s Hang Seng index fell more than 2% to cause losses as US Treasury yields to ten years again increased. Yield stabilized somewhat on Thursday morning, however, and was last seen at 1.4671%.
US futures are also pointing to additional losses at Thursday’s market opening, accelerating Wednesday’s falls in major indices as yields rose. Last week, the ten-year yield rose to a maximum of 1.6% in a measure that some described as a “rapid” rise, but which sparked fears about stock valuation and the rise. of inflation.
Technological actions have been the main victims of the withdrawal, as investors are pivoting towards actions that are potentially beneficial to an economic recovery, following the implementation of vaccination against Covid-19 and progress towards a American fiscal stimulus package.
State investors will be watching a speech by Federal Reserve Chairman Jerome Powell later Thursday for directions on the direction of growth and inflation.
In terms of data, PMI (Purchasing Managers ’Index) readings for the IHS Markit construction for February are due to be presented Thursday morning from the UK, Germany, France, Italy and the eurozone plus wide.
It is another busy day for profits in Europe, which promises to be a key driver for individual stock price action. Thales, Lufthansa, Merck, ProSiebenSat.1 and Aviva were among those who reported before the bell.
Lufthansa reported a smaller net loss than expected in the fourth quarter, but recorded a loss of 6.7 billion euros for the full year ($ 8.1 billion) in 2020. The airline warned that it will fight to benefit from flights before the end of 2021, as the pandemic continues to beat the demand for air travel.
German food processing company GEA Group rose 3.7% to lead the Stoxx 600 in the morning after increasing its profitability in 2020 and projecting revenue and profit growth in 2021.
Aviva exceeded the company’s expectations of making a 2020 operating profit of £ 3.2 billion ($ 4.5 billion) and was sold from the rest of the business in Italy to focus on the core markets, and sent the shares of the British insurer 1.8% more in the middle of the morning.
At the bottom of the European blue chip index, Anglo-Australian mining titanium Rio Tinto fell more than 6% after President Simon Thompson announced it would abandon the company’s destruction of a site 46,000-year-old native in Western Australia.
Shares of ProSiebenSat.1 fell 4.8% after the company projected single-digit revenue growth in 2021 despite a strong fourth quarter.
– CNBC’s Pippa Stevens contributed to this report.
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