European equities rebounded at the open as bond yields eased back from recent highs, with major regional indices gaining between 0.8% and 0.9%. The move also tracks Wall Street's late recovery from the prior session, though whether the bounce holds remains an open question with next week's US CPI report still ahead.
European indices opened broadly higher, clawing back ground after sliding into the close a day earlier. The rebound lines up with a pullback in bond yields that had been climbing steadily through the week.
Gains spread across the region
The advance showed up across every major benchmark at the open. The Eurostoxx rose 0.8%. Germany's DAX added 0.9%.
France's CAC 40 and Spain's IBEX each gained 0.9%, with Italy's FTSE MIB matching that pace. The UK's FTSE climbed 0.8%, rounding out a uniformly positive start to the session.
Yields retreat from the week's highs
The rally traces back to a pullback in borrowing costs after days of relentless increases that had pressured equities, with fiscal concerns in France adding to the unease around sovereign debt. 10-year Treasury yields dropped to around 5.24%, down from an overnight high near 5.35%.
French 10-year yields eased too, slipping to 4.83% after nearly touching 4.97% the day before.
Wall Street's late bounce lends support
US stocks still finished lower, but buyers clawed back some of the session's earlier losses late in the day, and that is helping set a steadier tone in Europe this morning. US futures reflect the same mood: S&P 500 futures are up 0.4%. Nasdaq futures lead with a 0.9% gain.
Still, the broader concerns behind this week's selloff haven't gone away. Inflation, elevated oil prices and government borrowing costs remain in play, and whether the rebound can stick may hinge on next week's US CPI report.
Source: investingLive
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