European Stocks Rebound wednesday Following Tuesday’s Bond Yield Surge
LONDON – European stock markets rebounded on Wednesday morning, snapping a day of declines triggered by escalating concerns over fiscal stability in major European economies. The Stoxx 600 rose, while the FTSE 100 and DAX also posted gains as investors digested developments in bond markets and global trade tensions.
Tuesday saw European stocks tumble as bond yields climbed amid anxieties surrounding the financial outlook for France and the United Kingdom. The U.K.’s 30-year bond yield hit its highest level since 1998, reaching a peak as traders braced for a contentious Autumn Budget. Concurrently, France’s 30-year yield reached its highest point as 2009 ahead of a crucial no-confidence vote that could potentially lead to the government’s collapse over a fierce budget dispute.Rising global bond yields are also linked to worries over President Donald Trump’s trade tariffs. U.S. Treasury yields jumped on Tuesday following a federal appeals court ruling on Friday that deemed most of his global trade duties illegal, raising the possibility of the government needing to refund collected duties and further straining the U.S. fiscal situation.Despite these headwinds, some investors remain optimistic about specific companies. Alison lygo of the investment bank noted, “We believe the downside risk to WOSG earnings driven by US import tariffs is much more contained than the shares are reflecting.” Lygo added, “this is based on our view that where the real risk sits, demand for non supply constrained brands in the US, is a much smaller part of the gross profit pool than is perhaps appreciated.”
Asia-Pacific markets traded mixed overnight,while U.S. stock futures edged higher after a federal court decision in an alphabet antitrust case boosted confidence that tech giants can navigate regulatory challenges.
Wednesday’s earnings releases in Europe include Swiss Life Holding and helvetia Holding, alongside the latest Turkish inflation data.
