European Stocks Declining Due to Disappointing Comments From Powell

The rise in US bond yields imposed new pressure on European stocks today, after comments made by Jerome Powell, Chairman of the US Federal Reserve, failed to assuage investor concerns about rising borrowing costs.
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The pan-European STOXX 600 index fell 0.9% in early trade, while travel, mining and financial services stocks led the decline.

While Powell said the increase in yields was “significant,” he did not consider it to disrupt the system, or push long-term interest rates so high that it might push the Fed to intervene in the markets more aggressively to cut them.

The comments sparked a selling wave on Wall Street on Thursday, and pushed the Nasdaq index, teeming with technology companies, to erase its gains since the start of the year. European technology shares also fell 1%, and are on track for their second consecutive weekly loss.

Oil stocks retreated as crude prices jumped to the highest level in nearly 14 months after OPEC and its allies decided not to increase supplies in April.

Shares in the London Stock Exchange Group declined 3.6% although it reported stable results for the year as a whole in 2020 and announced a 7% increase in dividends.