ga('send', 'pageview');

European Shares Slump on Hike in US Treasury Yields

By Investors Hub

European stocks have fallen on Thursday after upbeat U.S. data lifted U.S. Treasury yields to levels not seen since 2011, increasing the likelihood of further rate hikes from the Federal Reserve.

Markets expect an 80 percent probability of a Fed rate hike in December and three more rate hikes in 2019, with risks to the upside.

Investors also kept an eye on Italy, where the coalition government set a budget deficit target of 2.1 percent of GDP for 2020 and 1.8 percent of GDP for the following year.

ALSO READ  European Shares Extend Gains on Earnings Optimism

The government needs to obtain European authorities’ approval to keep the 2019 deficit level at 2.4 percent.

The French CAC 40 Index and the U.K.?s FTSE 100 Index are slumping by 1.1 percent and 1 percent, respectively, while the German DAX Index is bucking the downtrend and inching up by 0.1 percent.

ALSO READ  Skyway Aviation Hopes to Rake N1.9b from IPO

Danske Bank has fallen on news the Danish bank is facing a U.S. criminal inquiry over a money laundering scandal involving its Estonian branch.

Ted Baker has also slumped after the luxury clothing retail company warned of challenges ahead after reporting a 3.2 percent decrease in pre-tax profits for the 28 weeks ended August 11th.

On the other hand, Swedish home appliance manufacturer Electrolux has edged up slightly after it announced a partnership with Drop, a smart kitchen technology company, to further develop the smart kitchen ecosystem.

ALSO READ  Lagos Signs 2018 Budget Into Law, Targets N897b Revenue

BTG has soared after the healthcare company upgraded its sales forecast after delivering good product sales growth in the first half, with positive momentum across all areas of the business.

Banks are following their U.S. peers higher after upbeat U.S. economic data drove 10-year U.S. Treasury yields to their highest level in seven years.

Related Articles

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

more recommended stories

%d bloggers like this: