The FTSE 100 was the only major European index to close lower to start the week, slipping 0.10% while Germany, Italy, France, Spain and Switzerland all advanced. A broad rally in government bonds accompanied the equity gains, with UK and Italian yields leading the drop, and U.S. stocks built on the positive tone established overseas.
The FTSE 100 slipped 0.10% to close at 10,857.71, the lone decliner among Europe's six major indices to start the week. Germany's DAX led the advance, climbing 1.45% to 26,001.32. Italy's FTSE MIB rose 1.34% to 52,871.71.
France's CAC 40 added 1.22% to 8,613.83. Spain's IBEX 35 gained 1.01% to 19,982.61, while Switzerland's SMI advanced 1.01% as well. Against that backdrop, the FTSE 100 modestly underperformed its continental peers.
Government bond yields fall across Europe
The equity gains came alongside a rally in government bonds, with 10-year yields falling in every major market. The UK and Italy led the move. The UK 10-year gilt yield dropped 10.1 basis points to 4.955%. Italy's 10-year BTP yield fell 8.8 basis points to 3.939%, and Spain, France, Germany and Switzerland also saw yields move lower. That suggests investors grew more confident that inflation pressures will continue to ease.
Wall Street extends the rally
Lower yields also supported U.S. stocks as European and London traders headed for the exits. The Nasdaq Composite led with a 1.95% gain to 25,869.31. The S&P 500 rose 1.25% to 7,583.67. The Dow Jones gained 1.00% to 53,013.29 as well. Treasury yields extended the decline too, with the 10-year yield falling 5.7 basis points to 4.6878%.
The advance also extended beyond large-cap technology, with the Russell 2000 climbing 1.53% to 2,976.21.
Source: InvestingLive
Trading involves risk.
Risk Disclaimer
