Stock market today: European shares open higher after retreat in Asia
Shares have opened higher in Europe after a retreat in Asia
Shares opened higher in Europe on Thursday after a retreat in Asia as rising bond yields weighed on stock prices.
Germany's DAX edged 0.1% higher to 18,486.92 and the CAC 40 in Paris rose 0.3% to 7,956.50. Britain's FTSE gained 0.3% to 8,204.61.
The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average sank 0.8%.
With few data releases this week, the biggest factor weighing on stocks has been rising bond yields. By early Thursday, the 10-year yield had risen to 4.62% from 4.54% late Tuesday, following an auction of $44 billion in seven-year Treasurys.
The 10-year yield has been creeping higher since dropping below 4.40% in the middle of May. Higher Treasury yields hurt prices for all kinds of investments.
Asian shares tracked a pullback on Wall Street, with Tokyo's Nikkei 225 benchmark closing down 1.3% at 38,054.13.
The Hang Seng in Hong Kong declined 1.3% to 18,230.19.
The Shanghai Composite index gave up early gains, losing 0.6% to 3,091.68.
Australia’s S&P/ASX 200 slipped 0.5% to 7,628.20, while the Kospi in Seoul sank 1.6% to 2,635.44.
Taiwan’s Taiex lost 1.4% and India’s Sensex was 0.7% lower.
This month’s swings in bond yields comes as traders recalibrate their expectations for when the Federal Reserve could begin cutting its main interest rate, which is at its highest level in more than two decades.
With inflation stubbornly higher, traders have had to delay their too-optimistic forecasts for rate cuts several times this year.
“Hotter and stickier than expected global inflation appears to be taking the air out of asset markets,” Mizuho Bank said in a commentary. “In other words, “Goldilocks” coming undone. And
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