European equity markets closed mostly higher, led by Italy and Spain, even as sovereign bond yields rose across the continent. The UK's FTSE 100 was the lone major index to close lower, while U.S. stocks turned lower after strong labor data pushed Treasury yields sharply higher.
European equity markets closed mostly higher, shrugging off another move higher in sovereign bond yields. Italy and Spain once again led the advance, while the UK's FTSE 100 was the lone major index to close lower.
Among the major benchmarks, the DAX gained 0.06%, while France's CAC 40 added 0.35%, Spain's IBEX 35 rose 0.62%, and Italy's FTSE MIB climbed 0.44%. The FTSE 100 was the exception, slipping 0.19%.
Meanwhile, European 10-year benchmark yields climbed across the board. Germany's yield rose 4.3 bps to 3.148%, while the UK's climbed 5.8 bps to 4.953% and Italy's rose 7.7 bps to 3.956%, reflecting a global move higher in rates.
As London and European traders headed for the exits, U.S. stocks came under pressure from stronger-than-expected labor market data, higher oil prices amid rising Middle East tension, and a sharp jump in Treasury yields.
The Dow Jones Industrial Average dropped 377 points, or 0.69%, leading the declines. The S&P 500 fell 20 points, or 0.26%, while the Nasdaq 100 lost 127.8 points, or 0.43%.
Initial jobless claims rose by 1,000 to 199,000 in the latest week, keeping claims below the key 200,000 threshold and reinforcing the view that layoffs remain limited. Second-quarter nonfarm productivity increased 1.4% on an annualized basis, while unit labor costs rose just 1.3%, a combination marking a constructive development for the inflation outlook.
Source: Investinglive
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