European Stock Markets Extended Losses

Stock indices of Western European countries declined during trading on Monday due to cautious trade on world markets. 

Some equity investors are becoming increasingly concerned about the quick rise in bond yields in recent weeks, as it could negatively impact high-growth companies that depend on free lending and reduce the relative attractiveness of stocks, CNBC writes. The rise in bond yields reflects market confidence in the imminent economic recovery, following the coronavirus pandemic.

The 10-year Treasury yield jumped 14 basis points last week to 1.34%, near its highest level since February 2020. Since the beginning of this month, the benchmark rate has increased by 25 basis points.

Market Situation Today

The focus of traders remains on the situation with the pandemic and the rate of vaccinations. The UK’s Prime Minister, Boris Johnson, said that the first dose of the COVID-19 vaccine would be offered to all adults in the country by the end of July 2021. 

“We will now aim to offer a jab to every adult by the end of July, helping us protect the most vulnerable sooner, and take further steps to ease some of the restrictions in place,” Johnson told Sky News.

According to data released on Monday, the Ifo Business Climate indicator for Germany grew to 92.4 in February 2021, compared to the previous 90.3 points in January. Companies have become more optimistic about developments over the coming months.

The STOXX Europe 600 was the worst this month because of declines in technology companies and retail stocks. Germany’s benchmark stock index fell the most among its European peers, down 1.3%.

Germany’s DAX, France’s CAC 40, and Spain’s IBEX 35 index fell 1% each.

Britain’s FTSE 100 lost 0.85%, and Italy’s FTSE MIB index fell 0.9%. 

The most significant drop among the components of the Stoxx Europe 600 index was demonstrated by G4S PLC, which slumped 9.8%. Canada-based GardaWorld said on Monday it would not raise its offer to buy a UK G4S Plc.

The S&P 500 returned -0.2% for the week. Six of the index’s 11 sectors had negative returns. 

The benchmark XLE ETF gets back to 1.7% for the week because of suffered oil refineries from winter storms in Texas. It’s the best result of the week. 

The benchmark ETF, XLK returning -1.7% for the week, is pulled down by Apple’s (AAPL) -4.2% return.

That’s all the news for this Monday. Read only the latest news and market reviews with the TradeGuide! Stay up to date with us.

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