European stock markets falling and bond yields rising, oil and tensions are weighing on
Quick Look
European stock markets recorded sharp declines due to tensions on the bond market, with Treasuries and Gilts at multi-year highs, also driven by the return of oil above $100 and instability in the Middle East.
AI-generated summary
Why It Matters
Global financial markets face inflationary pressures and rising bond yields.
European stock markets are in trouble in this first part of the session with London dropping 1.7%, Milan 1.4%, Paris 1.2% and Frankfurt 1.1%. Price lists are feeling the effects of tensions on the bond market, where government bonds are hitting new highs, with 10-year Treasuries at levels not seen since 2002 and 30-year British Gilts since 1998.
The spread between BTPs and Bunds widens to 108 points while the yield on Italian 10-year bonds reaches 4.67%, up by 8 points.
Oil is weighing on the bond sector, with Brent once again pushing above 100 dollars a barrel (+2%) while the WTI advances by 2.1% to 92.32 dollars, with traders nervous about the lack of progress in stabilizing the Middle East.
Open Questions
- What will the central banks do next?
- Will oil remain steadily above $100?
