Solid Gold Berjangka | Europe Stocks Open Higher; 10-Year Treasury Yield Hits 16-Year High

08:23 22 August in Market, SOLID GOLD BERJANGKA | SOLID GROUP

European stock markets opened higher Tuesday after posting cautious gains to start the week.

The Stoxx 600 index was 0.5% higher shortly after the open, with all stocks flat or higher. Technology stocks led the pack, gaining 1.08%.

During overnight trade, bond selling sent the benchmark 10-year U.S. Treasury note yield to its highest level since 2007, as the 30-year yield hit its highest level since 2011. Higher bond yields generally mean lower stock prices.

“If there is a further downsize risk to equities over the coming months, I would say it’s coming from bond yields at these kinds of levels,” Rupert Thompson, chief economist at Kingswood Group, told CNBC’s “Squawk Box Europe.”

“Cash is now yielding 5% in the States, short-dated bonds are yielding 5% plus, so equities for the first time in a long time have actually got some real competition.”

Thompson said the yield moves reflect a pushback on expectations for substantial Federal Reserve rate cuts next year.

Source : CNBC

Eropa Saham Eropa Stoxx Europe 600

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