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Europe: Shares dip as yields bite ahead of US job data
[LONDON] European stock markets opened lower on Friday as rising yields continued to take their toll while investors waited for a US job data report to shed some light on whether higher interest rate will be required to prevent the economy from overheating.
US Treasury bond yields are on a seven-year high, echoing a market correction in February when rising yields of risk-free government debt made equities less attractive and lowered their value.
The pan-European STOXX 600 benchmark index was down 0.3 per cent by 0738 GMT. Germany's DAX also declined 0.2 per cent and the UK's FTSE fell 0.3 per cent.
Among top movers was Danske B ank, which is facing a US criminal investigation into a 200 billion euro (S$317.47 billion) money laundering scandal at its Estonian branch. Its shares were down 8.7 per cent after a rating cut by Credit Suisse.
Shares in Intu Properties soared 25 per cent Friday after a consortium, including British billionaire John Whittaker and Canada's Brookfield Asset Management, said it was considering a bid for the shopping centre owner.