Plus   Neg

European Shares To Open On Cautious Note As Bond Yields Rise


European stocks are seen opening largely unchanged on Wednesday after North Korea cancelled high-level talks with Seoul and threatened to scrap a historic summit next month between U.S. President Donald Trump and North Korean leader Kim Jong Un, saying the joint Air Force drills taking place in South Korea are ruining the diplomatic mood.

The dollar hovered near five-month high after U.S. bond yields surged to their highest level in almost seven years following the release of strong retail sales and homebuilder confidence data. Gold edged higher on short covering while oil prices fell on supply worries.

The day's economic calendar remains light, with final inflation figures from euro area and Germany due later in the day.

Across the Atlantic, trading may be impacted by reaction to economic reports on housing starts and industrial production.

Overnight, U.S. stocks fell notably after bond yields surged and Home Depot posted weaker-than-expected sales for the first quarter. The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite fell around 0.8 percent while the S&P 500 slid 0.7 percent.

European markets ended Tuesday's session on a lackluster note as investors continued to watch developments in Italian politics and digested a mixed bag of economic reports and corporate earnings.

The pan-European Stoxx Europe 600 index ended little changed with a positive bias. France's CAC 40 index and the U.K.'s FTSE 100 rose by 0.2 percent while the German DAX declined 0.1 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT