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Powell disappointment hits European stocks, tech slides again

Published 03/05/2021, 03:30 AM
Updated 03/05/2021, 03:35 AM
© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) - Rising U.S. bond yields put European equities under pressure again on Friday after Federal Reserve Chair Jerome Powell's remarks failed to soothe investor concerns about a recent surge in borrowing costs.

The pan-European STOXX 600 fell 0.9% in early trading, with shares of travel, mining, and financial services companies leading the declines.

While Powell said the rise in yields was "notable", he did not consider it a "disorderly" move, or one that pushed long-term rates so high the Fed might have to intervene in markets more forcefully to bring them down.

The comments fuelled a sell-off on Wall Street on Thursday, pushing the tech-heavy Nasdaq to erase its yearly gains. European tech shares also fell 1.0%, on course for their second weekly loss.

Oil stocks slipped as crude prices jumped to near 14-month highs after OPEC and its allies agreed not to increase supply in April. [O/R]

London Stock Exchange Group (LON:LSEG) fell 3.6% despite posting steady full-year results for 2020 and announcing a 7% dividend increase.

Latest comments

game over. play again?
Investors flocking to oil/industrials: seems democrat presidents are good for the rust belt.  Who'd have guessed.  They sure weren't doing that with Trump.
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