Europe: Shares retreat as rising bond yields weigh

[BENGALURU] Rising bond yields dragged European stocks lower on Friday, but major bourses were set for strong weekly gains as stimulus and vaccination programmes spurred hopes of a solid economic recovery.

The pan-European Stoxx 600 fell 0.4 per cent in early trading, after a four-session winning streak drove the index to pre-pandemic highs a day earlier.

With the 10-year US Treasury yield back above 1.6 per cent, investors booked some profits, especially in the tech sector, which was down 1.4 per cent.

Dutch company Prosus, which holds a third of Chinese tech giant Tencent Holdings, dropped 4.8 per cent as the Chinese market regulator fined 12 companies including Tencent related to deals that demonstrated illegal monopolistic behaviours.

German carmaker Daimler slipped 2 per cent after French rival Renault sold its entire stake in the company at a discount.

British luxury group Burberry jumped 7.2 per cent to the top of Stoxx 600 after saying it had seen a strong rebound in sales since December.

REUTERS