European stocks slipped on Friday, erasing much of the weekly gains, after France imposed new regional lockdowns to curb the spread of the coronavirus amid signs of slowing vaccination in some countries.
The pan-European Stoxx 600 index fell 0.6% at 8:09 a.m., following a tough session on Wall Street overnight after surging US bond yields.
The French CAC 40 was down 0.7% after the country imposed a new four-week lockdown from Friday in 16 regions hard hit by the health crisis.
Oil and gas, banks and miners led the declines as new lockdowns dampened hopes of a quick economic rebound.
Shares of BP, Royal Dutch Shell and Total fell between 1.8% and 2.9% after crude prices fell almost 7% overnight amid fears that the new lockdowns could hurt demand fuel.
Chinese stocks opened lower, following the fall in US stocks overnight after Treasuries yields rose amid concerns about rising inflation.
The CSI 300 index fell 1.9%, on losses in consumer staples and materials stocks. Benchmark 10-year Treasury yields hit their highest level since January 2020 on Thursday, as traders raised their bets, the Federal Reserve will allow inflation to outpace the backdrop of an economic rebound.
Global liquidation will add pressure on Chinese stocks after the CSI gauge entered a technical correction last week amid concerns over high valuations and possible monetary tightening, with state-backed funds stepping in to stabilize the market.
“Mainland China and Hong Kong markets follow the global sell-off after bond yield surged overnight,” said Linus Yip, strategist at First Shanghai Securities.
“The low turnover rate in both markets shows that investors are cautious. Sales of high valuation stocks, including tech, continue, in line with a global trend. “
Hong Kong’s Hang Seng Index slipped as much as 1.5 percent amid steep decline in Asian stock markets.
Foreign investors turned net sellers of Chinese A shares on Friday morning via the trade links, offloading a net worth of 657 million yuan ($ 101 million) of mainland stocks.
If the trend continues until the close, it would be their first net selling day since March 8 – when the market fell into a technical correction from its February 10 high.
Still, investors say no new closing lows are likely to be hit on the continent, especially as the market has mostly taken into account concerns about the recent uptrend in US yields.
London’s FTSE 100 fell, hit by higher bond yields around the world, while energy stocks fell as new lockdowns of Covid-19 across Europe dampened hopes of a rapid recovery in Requirement.
The blue-chip FTSE 100 index fell 1.2%, as oil heavyweights BP and Royal Dutch Shell fell 3.2% and 3% respectively.
Mining and banking stocks, including Rio Tinto, Anglo American, BHP Group, HSBC and Barclays, were also among the index’s biggest drag.
A weaker late night on Wall Street following a surge in US Treasury yields also spilled over into Asian stocks earlier in the day.
In the UK, data showed consumer morale hit a one-year high in March as the public grew increasingly confident of a strong economic rebound from the Covid-19 pandemic one day. after the Bank of England also said the national recovery was gaining momentum. .
The domestically-focused mid-cap FTSE 250 index fell 0.8%, dragged down by industrial stocks.
Pub operator JD Wetherspoon fell 1.1%, on a half-year loss, from a year earlier profit, as hundreds of its pubs across the UK were closed during the main holiday season due to coronavirus restrictions.
Natwest Group rose 0.4 percent after agreeing to buy back 1.1 billion pounds of shares from the UK government. – Agencies