LONDON-As global markets react to rising US bond yields, European stock markets are expected to open lower on Wednesday.
British FTSE The index opened 25 points lower to 7,472, Germany Dax French stock market fell 24 points to 16,110 CAC 40 Fell 10 points to 7,299 and Italy FTSE Index According to IG data, it fell 16 points to 27,778 points.
The European market is expected to follow Negative trends generally appear in the Asia-Pacific region Overnight, investors paid close attention to interest rates in the bond market, U.S. Treasury yields are rising at the fastest New Year’s rate in two decadesThe yield on the benchmark 10-year US Treasury note rose to 1.71% on Tuesday, and was last reported at 1.6455%.
10-year yield is important Because it affects the loan interest rates of mortgages and many other commercial and consumer loans. When bonds sell off, yields or interest rates will go up.
Investors are waiting for the minutes of the Fed’s December meeting to be announced on Thursday. The central bank announced last month that it would speed up the reduction of bond purchase plans and predicted that it will raise interest rates three times in 2022.
at the same time, US stock futures were flat overnight On Tuesday, the Dow Jones Industrial Average hit a record high, and investors flocked to stocks that are expected to benefit from the economic recovery.
The data released in Europe on Wednesday includes the final PMI (Purchasing Managers Index) data for the service industry and manufacturing industry in the Eurozone in December and the Italian consumer confidence data or December.
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— CNBC’s Yun Li, Patti Domm and Eustance Huang contributed to this market report.