European shares set for first monthly loss in six as bond yields weigh
European shares were headed for their first monthly decline in six on Wednesday as inflation risks stemming from the Middle East war battered bond markets across the globe, driving borrowing costs higher. On the day, the pan-European STOXX 600 was up 0.7% at 642.69 points by 0722 GMT. The index is set to end the month with a 1.5% decline and the third quarter, nearly flat. A surge in global bond…
European shares are poised for their first monthly decline in six months as rising bond yields, driven by inflation concerns from the Middle East conflict, take their toll on markets worldwide. By 0722 GMT on Wednesday, the pan-European STOXX 600 index was trading at 642.69 points, up 0.7% for the day but on track for a 1.5% monthly decline and a flat third quarter.
The surge in global bond yields to multi-decade highs has put pressure on stocks, with investors anticipating higher interest rates to combat inflationary pressures stemming from surging energy prices. Despite this, oil prices ticked upward on Wednesday after US President Donald Trump ruled out easing sanctions on Iran, while Qatar called for peace talks.
However, bond yields showed a respite, with the 10-year German bund yield easing for the second consecutive day. In better news, Britain's economy expanded more quickly than initially estimated in the second quarter, while France's inflation figure for September exceeded expectations. September inflation data from Germany will be released later in the day, potentially shedding light on the economic health of the country.
Gains were seen in mining shares, propelled by Boliden AB and Rio Tinto, while media shares weighed on the market. Glencore saw a 1.4% increase after securing approval to continue operations at its Hunter Valley thermal coal project in Australia until 2045.
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