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Rising U.S. Yields Knock European Stocks, Miners Slump

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European stocks fell on Thursday after three straight sessions of gains as a jump in U.S. bond yields knocked risk appetite globally, with heavyweight miners and travel stocks leading the retreat.

The panEuropean STOXX 600 index fell 0.5 in early trading, with miners dropping 2.8 and travel leisure stocks down 1.6.

UKlisted shares of Rio Tinto and BHP Group shed 5.2 and 4.3 respectively, after their Australialisted stocks were hit by exdividend trading.

German airline Lufthansa dropped almost 2 after it posted record losses for 2020 and trimmed its 2021 capacity plans as COVID19 disruption drags on.

The 10year U.S. Treasury yield, the benchmark for global borrowing costs, rose past 1.45 on Wednesday as investors anticipated a rise in inflation with governments continuing to pump money into the global economy and as vaccination programmes progress.

Investors are waiting to see if Federal Reserve Chairman Jerome Powell will address concerns about the risk of a rapid rise in longterm borrowing costs later in the day.

Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu

Source Reuters

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