European stocks closed lower on Wednesday as U.S. Treasury yields briefly spiked, with inflation concerns continuing to weigh on global markets.
The pan-European Stoxx 600 provisionally ended down 1%, with all sectors and major bourses in negative territory. Retail, autos and travel and leisure stocks were among those leading the losses, down over 2.5%.
The benchmark U.S. 10-year Treasury yield retreated from more than three-month highs on Wednesday, as investor jitters over the potential for persistent higher inflation endured. The jump in bond yields has caused investors to flee highly valued tech stocks in the U.S., as higher rates make their future profits less attractive.
On the data front, German industrial orders fell more sharply than expected in August as overseas demand weakened. Spanish industrial output rose 1.8% year-on-year in August, well below the 3.5% Reuters consensus forecast.
Investors in the region kept an eye on U.S. data on Wednesday, as payroll processing firm ADP reported U.S. companies shook off worries over the Covid delta variant and hired at a faster-than-expected pace in September. The closely watched nonfarm payrolls report for September is slated for release on Friday.
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