European stock markets are moving in a negative direction on Wednesday against the background of the rally of bond yields in the US and Europe as the prospect of a tighter monetary policy this year burdens the investment climate.
Wall Street indexes suffered heavy losses on Tuesday after the new rally of yields, with the yield in 10 years exceeding 1.87%, climbing to a two-year high. The yield started the year close to 1.5%.
In Europe, the performance in 10 years of Germany went above zero today for the first time since 2019 as investors expect the European Central Bank to gradually adjust its stance to deal with the inflation rally. Data released in December showed that annual inflation hit a new record, climbing to 5%, which is expected to increase pressure on the ECB to take action to curb prices.
On the board, the pan-European STOXX 600 index fell 0.2% to 478.72 points.
The German DAX loses 0.4% to 15,705.85 points, the French CAC 40 marks marginal changes to 7,134.83 points, while the British FTSE 100 loses 0.2% to 7,546.01 points after the data showed that inflation jumped to its highest level since 1992.
In particular, the consumer price index recorded an annual jump of 5.4% in December, as announced today by the British Statistical Office. Analysts’ average estimates put inflation at 5.2%.
In the periphery, the Italian FTSE MIB is down 0.8%, while the Spanish IBEX 35 is moving with small losses of 0.1%.
.
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
