Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European Stocks Lower; Tech Stocks Hit by Higher Yields

Stock MarketsSep 28, 2021 04:24AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets retreated Tuesday, with high-growth tech stocks pressured by rising bond yields, while investors digest the inconclusive German election and Chinese property group Evergrande’s ongoing debt crisis.

At 4:25 AM ET (0825 GMT), the DAX in Germany traded 1% lower, the CAC 40 in France fell 1.5% and the U.K.’s FTSE 100 dropped 0.6%.

Soaring U.S. Treasury yields following last week’s Federal Reserve meeting have translated into higher yields in Europe, with the yield on the benchmark 10-year German bund climbing 3 basis points Tuesday. 

The tech sector has suffered as a consequence, with Logitech (NASDAQ:LOGI) stock falling 7.7%, not helped by Morgan Stanley (NYSE:MS) downgrading the Swiss company to ‘underweight’ from ‘equal weight’, and ASM International (OTC:ASMIY) stock falling 3.6% despite the Dutch semiconductor supplier raising its third-quarter order intake guidance.

On the flip side, financials were supported by the rising interest rates, with the likes of SEB (ST:SEBa), Aegon (NYSE:AEG), ABN (AS:ABNd), Raiffeisen (VIE:RBIV) and Virgin Money (LON:VM) all trading at 52-week highs. Eni (MI:ENI), BP (NYSE:BP) also reached 52-week highs as oil and gas prices continued to climb. Most notable was the 13-year high hit by Gazprom (MCX:GAZP), arguably the only company that can offer a reasonably quick fix to the shortage of gas in Europe.

Additionally, easyJet (LON:EZJ) stock fell 3.6% after the airline said it had received acceptances from investors for 93% of the new shares it sold as part of a 1.2 billion pound ($1.64 billion) fully underwritten rights issue.

Investors will be keeping an eye on the ramifications of Germany’s general election on Sunday, which resulted in the Social Democrats party narrowly winning the vote. Prolonged negotiations are likely to follow in order to form a coalition to govern Europe's biggest economy, but the far left's weak result has in all likelihood ruled it out as a potential partner, to the market’s relief.

Investors also continue to fret about the future of China Evergrande Group (HK:3333), and the potential for global contagion, after it failed on Friday to meet a deadline to make an interest payment to offshore bond holders. China's economy is also suffering from spreading power outages, with the electricity system unable to meet demand from both households and industry. 

Back in Europe, the European Central Bank will hold its annual research meeting, with ECB President Christine Lagarde’s speech sure to be watched for any sign that rising energy prices are changing the bank's thinking about inflation. European gas and power prices surged to new record highs in early trade on Tuesday.

Ahead of that, the widely-watched German GfK consumer sentiment data showed a surprise rise in confidence in October, to +0.3 from a revised -1.1 the previous month.

Crude prices traded higher Tuesday, rising for the sixth consecutive session on concerns of a global supply crunch just as demand picks up with the easing of Covid-19 pandemic restrictions.

U.S. crude oil supply data from the American Petroleum Institute are due later in the day, as well as OPEC’s latest World Oil Outlook. By 4:25 AM ET, U.S. crude futures traded 1% higher at $76.22 a barrel, a two-month high. Brent rose 0.8% to $79.32, its highest since October 2018.

Additionally, gold futures fell 0.7% to $1,740.25/oz, while EUR/USD edged 0.1% lower to 1.1679.

 

European Stocks Lower; Tech Stocks Hit by Higher Yields
 

Related Articles

Cadence Design Earnings, Revenue Beat in Q3
Cadence Design Earnings, Revenue Beat in Q3 By Investing.com - Oct 25, 2021

Investing.com - Cadence Design (NASDAQ:CDNS) reported on Monday third quarter earnings that beat analysts' forecasts and revenue that topped expectations. Cadence Design...

Facebook Earnings Beat, Revenue Misses In Q3
Facebook Earnings Beat, Revenue Misses In Q3 By Investing.com - Oct 25, 2021

Investing.com - Facebook (NASDAQ:FB) reported on Monday third quarter earnings that beat analysts' forecasts and revenue that fell short of expectations. Facebook announced...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
stefan mihalea
stefan mihalea Sep 28, 2021 4:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lower? good to invest! specially that investments are coming
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email