There was pressure on European equities, but more specifically Nasdaq-100 futures on Friday as government bond yields resumed their rise.
The Stoxx Europe 600 index SXXP,
fell 0.5% to 423.13 after a four session winning streak. The German DAX DAX,
fell 0.3%, while the French CAC 40 PX1,
and FTSE 100 indices UKX,
were flat. The euro EURUSD,
and pound GBPUSD,
fell against the dollar DXY,
which was strengthened across the board.
A familiar scenario emerged for investors, with Nasdaq-100 futures NQ00,
a decrease of more than 1% if the return on the US 10-year Treasury TMUBMUSD10Y,
Up 6 basis points to 1.58% a day after falling below 1.5% for the first time in a week. Dow Futures YM00,
submerged and S&P 500 futures ES00,
fell 0.5%.
European and US stocks climbed Thursday after President Joe Biden signed a $ 1.9 trillion stimulus bill, and the European Central Bank said it would accelerate its bond-buying plan as it continues to combat the pandemic’s impact on economies .
Read: The ECB just bounced back against rising bond yields, which caught traders by surprise
While the ECB’s stance on Thursday boosted the region’s bonds, those assets were again under some pressure on Friday. The 10-year German government bond yields TMBMKDE-10Y,
Up 2 basis points to -0.308%. The return on the 10-year British gold-plated TMBMKGB-10Y,
Up 4 basis points to 0.781%. Revenues move in the opposite direction of prices.
Data showed the UK economy contracted 2.9% in January, with weakness led by the services sector amid blockages and as new Brexit trade arrangements hit exports, the Office for National Statistics said Friday.
Among stocks in motion, there was technical weakness in Europe, with shares of ASML Holding ASML,
ASML,
and STMicroelectronics STM,
STM,
each a decrease of at least 1%.
Burberry BRBY,
stocks were up 7% after the luxury goods group forecast fiscal 2021 sales and adjusted operating profit to exceed expectations.