On Friday, technology stocks were the first to bear the brunt, European stock markets suffered losses, and Wall Street’s performance was worrying. However, as the rise in bond yields slowed, US stock futures rose slightly.
Stoxx Europe 600 Index SXXP,
It fell 0.5% to 409.55, making the weekly loss slightly more than 1%. German DAX DAX,
Fell by 0.2%, France’s CAC 40 PX1
Fell 0.5% to FTSE 100 UKX,
Fell 0.2%. EURUSD
The decline is at the expense of the appreciation of the dollar DXY,
However, as the global bond selling spree eased, losses were contained. The rise of U.S. 10-year government bonds TMUBMUSD10Y,
The one-year high of 1.5% higher than Thursday triggered a stock plunge, but the yield has since fallen back to 1.45%. The yield of the 10-year German government bond TMBMKDE-10Y
Hovering around 0.274% of the year’s high.
Naeem Aslam, chief market analyst at AvaTrade, said: “People are worried that interest rate hikes will inhibit economic recovery.”
Isabel Schnabel, a member of the Executive Committee of the European Central Bank, said on Friday that the central bank will need to monitor long-term real interest rates.
She said at a virtual conference: “In the early stages of the recovery, even if it reflects improved growth prospects, the rise in real long-term interest rates may withdraw important policy support prematurely and too abruptly.” “Then the policy will have to increase its level of support.”
US stock futures ES00,
After the Dow Jones Industrial Average (DJIA) had its worst trading day since January 29, it rose slightly,
The Nasdaq Composite Index fell 3.5%,
This is the worst one-day loss since September.
European technology stocks are catching up with the sell-off on Wall Street, which has also spread to Asia. Aslam said that although Thursday’s sell-off was uniform, investors have moved from the technology sector to areas more suitable for economic recovery.
In the chip field, the shares of the Dutch group ASML Holding ASML,
And STMicroelectronics STM
Each fell by about 1%. ASM International ASM,
The stock price fell 2%.
Stocks of major oil company BP BP,
And total TOT,
Fell by 1.7% and nearly 1% respectively, following the lower crude oil futures CL00,
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Airlines became the focus, the shares of the International Integrated Airline Group (IAG),
An increase of 4%. Operators of British Airways, Iberia and other airlines have a net loss of 6.92 billion euros ($8.43 billion) in 2020 and stated that due to the uncertainty of the COVID-19 pandemic, it will not be able to provide 2021 guide.
Bernstein analysts Daniel Roeska and Alex Irving said that IAG adjusted EBIT was slightly better than expected, and there seemed to be enough liquidity in the summer. , The cash consumption is “low enough”. What followed was the stock of Lufthansa LHA,
And easyJet EZJ,
And vacation travel agency TUI TUI,
But the shares of Norwegian Aerospace Shuttle NAS,
The airline fell 3% after the company said that due to increased impairment losses, losses in the fourth quarter surged. The company said it will release a detailed plan next week to support its future.