European markets are heading for a lower opening on Thursday as rising bond yields once again saw nervousness return to global equities.
The UK FTSE 100 is seen down around 67 points to 6608, the German DAX is expected to drop around 118 points to 13662 and the French CAC 40 is expected to open around 41 points lower at 5,789, according to IG data .
European stocks are expected to receive a small transfer from Asia-Pacific, where the Japanese Nikkei 225 index and the Hong Kong Hang Seng index fell more than 2% to cause losses as the performance of the The 10-year US Treasury rose again, last seen at 1.4757%.
U.S. equity futures also point to further losses as the market opens on Thursday, accelerating Wednesday’s declines for major indexes as yields climbed. Last week, the 10-year yield surged to a high of 1.6% in a move that some have described as a “lightning” spike, but which has raised fears about the valuation of stocks and the rise of. inflation.
Tech stocks have been the main victim of retirement, with investors turning to stocks seen as likely to benefit from an economic recovery following the rollout of the Covid-19 vaccination and progress towards a US fiscal stimulus package .
Investors in the United States will be keeping an eye on a speech by Federal Reserve Chairman Jerome Powell later Thursday for guidance on the direction of growth and inflation.
On the data front, the IHS Markit Construction PMI (Purchasing Managers Index) readings for February are expected Thursday morning from the UK, Germany, France, Italy and of the euro area at large.
It’s another busy day for earnings in Europe, which promise to be a key driver of individual stock price action. Thales, Lufthansa, Merck, ProSiebenSat.1 and Aviva were among those who reported before the bell.
Lufthansa posted a lower-than-expected net loss in the fourth quarter, but recorded a full-year loss of 6.7 billion euros ($ 8.1 billion) in 2020. The airline has warned it will have struggling to capitalize on flights before the end of 2021. The pandemic continues to weigh on demand for air travel.
– CNBC’s Pippa Stevens contributed to this report.
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