European stocks held nearly flat on Tuesday as a fresh selloff in government bonds offset gains from strong corporate updates. Germany's 30-year yield hit a fresh 15-year high and France's 30-year yield touched its highest since 2008, while Reckitt Benckiser and Air Liquide led individual gainers.
European shares barely moved on Tuesday as a renewed bond selloff kept pressure on the region's benchmarks, even as upbeat corporate news limited the damage. The pan-European STOXX 600 edged up 0.04% to 651.35 points by 0729 GMT.
Britain's FTSE 100 fell 0.4% as trading resumed after Monday's bank holiday. Germany's DAX slipped 0.2%. France's CAC 40, meanwhile, gained 0.4%.
Global bond yields climbed to major new highs on Tuesday, as renewed fighting in the Middle East lifted oil prices and investors braced for a slew of interest rate hikes amid inflation worries. Germany's 30-year government bond yield rose to a fresh 15-year high. France's 30-year yield, meanwhile, climbed anew to touch its highest since 2008.
Hawkish remarks from Federal Reserve Chair Kevin Warsh last week, combined with the Middle East conflict's effect on energy prices, pushed investors to price in the hikes. Traders largely expect the European Central Bank to hike rates in September, according to LSEG data. Euro zone inflation figures for August, which could offer fresh clues on the rate trajectory, are due later in the day.
Energy stocks rose 1.4% as Brent crude traded around $92 a barrel. Reckitt Benckiser added 5.2% after a jury favored the company in its trial over claims it failed to warn that its products for premature babies could cause a deadly bowel disease.
Air Liquide climbed 3.8% after media reports said activist investor Elliott Investment Management has built a stake in the French multinational.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
