European stocks closed higher on Tuesday, with the technology industry again in the red, as a new rally in US government bond yields revived speculation that the US Federal Reserve would not be long in coming. tightening its policy, moving forward with its first rate hike, most likely in March.
The yield in the US biennium today exceeded the level of 1% for the first time since February 2020, while the yield in 10 years climbed again above 1.8%.
The jump in yields comes amid the US Fed’s plan for four rate hikes this year to curb inflation. At the same time, the European Central Bank has taken a more lenient approach to withdrawing stimulus measures, with its top executives reiterating that inflation – despite a strong jump in recent months – will decline in 2022.
In this climate, the pan-European STOXX 600 index fell 1% to 479.79 points, with the technology sector falling 2.2%.
The German DAX index lost 1% to 15,772.56 points, the French CAC 40 fell 0.9% to 7,133.83 points, while the British FTSE 100 fell 0.6% to 7,563.55 points.
In the region, the Italian FTSE MIB fell 0.7%, while the Spanish IBEX 35 lost 0.65%.
In business developments, the Swiss asset management company GAM Holding fell 16.7% after announcing that it expects to show a net loss of about 30 million francs for 2021 in the official announcement of its results next month.
Hugo Boss announced on Tuesday that revenues and profits were higher than expected in 2021 after a strong start to the year, according to preliminary data. The German company of high quality clothing, announced that sales for the quarter were 1.2% higher in fixed currency, compared to the corresponding period of 2019, and 51% higher on an annual basis, at 906 million Euros.
Macro’s day, the German investment climate improved in January amid expectations that coronavirus outbreaks would decline by early summer, allowing growth in Europe’s largest economy to recover in the next six months. The ZEW Institute for Economic Research stressed that the economic climate index strengthened to 51.7 points from 29.9 in December.
In addition, British companies added a record 184,000 to their staff in December, showing little sign of being hit by Omicron, and raising the total staff by about 1.4% above the pre-pandemic level of February 2020. . The broader unemployment rate for the quarter to the end of November fell to 4.1%, according to the statistical service, lower than economists’ estimates for 4.2%.
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