Rising Bond Yields Are Putting Pressure on European Stocks

Higher bond yields pushed European stocks lower today, but the main stock exchanges are heading for strong weekly gains as stimulus and immunization campaigns from the Coronavirus raise hopes for a strong economic recovery.

The European STOXX 600 index fell 0.4% in early trade, after a series of gains over four sessions that led the index to the highs it recorded before the pandemic in the previous session.

With US Treasury yields rising for ten years again above 1.6%, investors sold stocks to reap some profits, especially in the technology sector, which fell 1.4%.

German auto maker Daimler fell 2% after its French rival Renault sold its entire stake in the company at a discount.

British luxury group Burberry jumped 7.2%, topping the STOXX 600 after it said it had seen a strong rebound in sales since December.