European stocks close sharply lower, down 2.5% for the week on bond yield jitters
European stocks fell on Friday, after global markets were roiled by a sudden spike in bond yields that sent investors fleeing highly valued segments of the market.
The pan-European Stoxx 600 closed down by 1.7% provisionally, with basic resources shedding 4.3% to lead losses as almost all sectors and major bourses finished in negative territory.
For the week, the benchmark was down 2.5% but saw a climb of 2.2% for the whole of February.
On Wall Street, stocks swung wildly with tech names bouncing between losses and gains on Friday as traders struggled to shake off fears of rapidly rising rates.
The yield on the U.S. 10-year Treasury note briefly surpassed 1.6% on Thursday, its highest in over a year, fueled by expectations for higher economic growth and inflation on the back of Covid vaccine rollouts, the prospect of significant fiscal stimulus from Washington and pent-up consumer demand. The 10-year U.S. Treasury yield mellowed slightly on Friday, but remained above the 1.5% mark.
U.K. bond yields rose on Friday after Bank of England Chief Economist Andy Haldane warned that inflation may become difficult to tame, prompting more assertive policy action.
Reference: CNBC
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