European stocks falter and Nasdaq-100 futures tumble as Treasury yields resume their rally


Pressure emerged for European equities, but most notably for Nasdaq-100 futures on Friday, as Treasury yields resumed their rally.

The Stoxx Europe 600 SXXP index,
-0.54%
It fell 0.5% to 423.13 after a four-session winning streak. The German DAX DAX,
-0.72%
fell by 0.3%, while the French CAC 40 PX1,
-0.21%
and the UKX indices of the FTSE 100,
-0.30%
they were flat. The euro EURUSD,
-0.60%
and pound GBPUSD,
-0.52%
fell against the DXY dollar,
+ 0.57%,
which was strengthened in all areas.

A familiar scenario for investors was emerging, with Nasdaq-100 NQ00 futures,
-1.85%
dropping more than 1% as the TMUBMUSD10Y 10-year US Treasury yield,
1.604%
it rose 6 basis points to 1.58%, a day after falling below 1.5% for the first time in a week. Dow YM00 Futures,
-0.09%
S&P 500 ES00 futures,
-0.63%
fell 0.5%.

European and US stocks rose on Thursday after President Joe Biden signed into law a $ 1.9 trillion stimulus bill, and the European Central Bank said it would accelerate its bond-buying plan while continuing to fight the effects. of the pandemic in the economies.

Read: The ECB just fought back against rising bond yields, surprising traders

While the ECB’s stance boosted the region’s bond gains on Thursday, those assets came under some pressure again on Friday. The yield on 10-year German government debt TMBMKDE-10Y,
-0.314%
it rose 2 basis points to negative 0.308%. The performance of the British 10-year gilt TMBMKGB-10Y,
0.787%
it rose 4 basis points to 0.781%. Yields move in the opposite direction to prices.

Data showed the UK economy contracted 2.9% in January, with weakness led by the services sector amid lockdowns and as new Brexit trade deals hit exports, the Office said on Friday. of National Statistics.

Among moving stocks, technology weakness was manifesting in Europe, with shares of ASML Holding ASML,
+ 4.03%

ASML,
-2.37%
and STMicroelectronics STM,
+ 4.36%

STM,
-1.88%
each with at least 1%.

Burberry BRBY,
+ 7.73%
The shares rose 7% after the luxury goods group forecast tax revenue for 2021 and operating profit adjusted to beat expectations.

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