European shares are on track for their first monthly loss in six months as a global bond selloff and Middle East-driven inflation risks push borrowing costs higher. The STOXX 600 rose on the day but is still set to close September down, even as mining stocks bucked the trend.
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. The pan-European STOXX 600 was up 0.7% at 642.69 points by 0722 GMT. However, the index is set to end the month with a 1.5% decline, with the third quarter nearly flat.
A surge in global bond yields to multi-decade highs has pressured stocks in recent weeks, as investors brace for higher interest rates to tame inflationary pressures from surging energy prices. Oil prices edged higher on Wednesday after US President Donald Trump denied he would be willing to ease sanctions on Iran, while Qatar pushed for peace talks. However, yields took a breather, with the 10-year German bund yield easing for a second day.
Britain's economy grew faster than previously thought in the second quarter. Meanwhile, France's inflation reading for September came in higher than expected. Germany's September inflation data is due later in the day, which could offer clues into the health of the nation.
Mining shares were among the day's gainers, led by advances in Boliden AB and Rio Tinto, while media shares lagged. Glencore gained 1.4% after the company won approval to continue operations at its Hunter Valley thermal coal project in Australia until 2045.
Source: Investing.com
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