Bond yields, oil prices, vaccines in focus

LONDON – European markets fell back on Friday after a rally in bond yields rekindled concerns about equity valuations, while the US Federal Reserve’s decision not to extend a rule from the era of the The pandemic that had allowed banks to relax capital levels further affected risk assets.

The pan-European Stoxx 600 was down 1.1% during afternoon trading, and banks fell 2.7% to lead losses as all sectors except utilities fell into the red.

US stocks tumbled at the open on Friday after the Fed refused to extend a rule that expired at the end of the month and relaxed the supplemental leverage ratio for banks during the pandemic.

European stocks started the day with a weak carryover from Asia-Pacific, where stocks fell mostly during trading on Friday following Thursday’s sell-off in the United States. Following its last monetary policy meeting, the Bank of Japan announced a series of measures that included widening the range in which the yield on Japanese 10-year government bonds is allowed to fluctuate from the target level to plus and minus 0, 25%.

Oil prices are also in the limelight after a slide on Friday, as reports of new waves of coronavirus infections and new lockdown measures in Europe clouded the outlook for crude demand.

Germany and France are among the countries that resumed launching the AstraZeneca / Oxford University Covid-19 vaccine on Friday, after British and European drug regulators recommended that it continue to be used due to concerns that a small number of recipients develop blood clots.

On the data front, British consumer confidence hit a one-year high in March, according to a GfK survey, with hopes of an imminent economic recovery on the rise as the country seeks to break out of lockdown measures at the level. national in the coming months.

In terms of individual share price movement, TeamViewer plunged 12% during afternoon deals after the German remote working software company cut its guidance for 2021.

Danish IT consultancy Netcompany rose 3% after winning a contract to develop Denmark’s coronavirus passport for use from May, according to Danish media reports.

– CNBC’s Yun Li and Jesse Pound contributed to this report.

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