European stocks decline, affected by rising bond yields and the Middle East conflict
2023-10-23 17:46:00 © Reuters. An electronic board displays the German DAX index at the Frankfurt Stock Exchange, Germany, on Monday. Photography: Reuters. (Reuters) – European stocks fell on Monday, affected by the rise in government bond yields and investors’ concern about the raging conflict in the Middle East between the Palestinian Islamic Resistance Movement (Hamas), ... Read more European stocks fell on Monday, largely due to rising bond yields and concerns over the Middle East conflict. The German DAX index closed 0.1 percent lower after falling more than three percent last week. Concerns grew about the ongoing conflict between Israel and Hamas, with Israel continuing its bombing of the besieged Strip. The Italian index was among the biggest gainers in the region's markets, rising 0.7 percent and supported by a 2.6 percent rise in UniCredit shares. Mining company shares fell 1.1% and interest-rate-sensitive real estate shares fell to their lowest levels since 2012 before trimming their losses. Volkswagen shares also fell after lowering its profit margin expectations for the current year.
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© Reuters. An electronic board displays the German DAX index at the Frankfurt Stock Exchange, Germany, on Monday. Photography: Reuters.
(Reuters) – European stocks fell on Monday, affected by the rise in government bond yields and investors’ concern about the raging conflict in the Middle East between the Palestinian Islamic Resistance Movement (Hamas), while the Italian index was among the biggest gainers in the region’s markets.
The European index closed 0.1 percent lower after falling more than three percent last week.
As European Union leaders prepare to call a “humanitarian truce” in the war between Israel and Hamas so that aid can be delivered to Gaza, Israel has continued its bombing of the besieged Strip.
Washington warned of a great danger to American interests in the Middle East with the continuation of Israeli air strikes.
Pressure on the index increased due to the rise in the yield on the 10-year benchmark above five percent today before the gains were reduced. US GDP and inflation data are scheduled for release later this week.
“European government bond yields are at multi-year highs, in line with what we are seeing in the United States,” said Laura Cooper, chief strategist at BlackRock.
Mining company shares fell 1.1 percent, with the prices of most basic metals affected by geopolitical tension, while interest-rate-sensitive real estate shares fell to their lowest levels since 2012 before trimming their losses, with the sector closing down 0.6 percent.
However, the Italian index was among the few winners in the region, as it rose 0.7 percent, supported by a 2.6 percent rise in UniCredit shares, as the bank sought to buy a nine percent stake in Alpha Bank.
Volkswagen shares (ETR:) fell to their lowest levels since April 2020 after the automaker lowered its profit margin expectations for the current year on Friday.
Philips (AS:) shares also fell by 2 percent after the Dutch health group announced a decline in third-quarter orders.
Indivior shares jumped 5.2 percent, limiting losses in the health care sector, after the pharmaceutical company said it would pay 385 million to settle a lawsuit related to the treatment of opioid addiction.
Gittingye shares also rose 3.8 percent after the Swiss medical equipment manufacturer achieved quarterly sales that exceeded expectations.
British Vestry shares fell 5.8 percent to the bottom of the STOXX 600 index after the home builder lowered its annual profit forecast and said it would cut 200 jobs.
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