European Stocks Down Again On Rising Bond Yields, Interest Rate Concerns

(RTTNews) - European stocks are down in negative territory on Monday as fading prospects of any significant monetary easing by global central banks, including the Federal Reserve, the ECB and BoE, uncertainty about global economic growth and rising bond yields continue to hurt sentiment.

The pan European Stoxx 600 is down 4.35 points or 0.85% at 507.15. The U.K.'s FTSE 100 is down 34.83 points or 0.42% at 8,213.66, Germany's DAX is down 152.30 or 0.75% at 20.069.04 and France's CAC 40 is down 61.61 points or 0.8% at 7,369.43.

In the UK market, IAG is down nearly 4%. Pearson, Easyjet, Hiscox, DS Smith, Barratt Redrow, Fresnillo, Rolls-Royce Holdings and M&G are lower by 2 to 3.4%.

Diageo, RightMove, Ashtead Group, Standard Chartered, Informa, 3i, Scottish Mortgage, Diploma, Melrose Industries, Halma, Persimmon, HSBC Holdings and BAE Systems are also notably lower.

Rentokil Initial is rising nearly 3.5%. Entain is up 2.5%, lifted by the company's strong earnings guidance. Glencore, Centrica, Shell, ICP and BP are advancing 1 to 1.7%.

In the German market, Infineon, Deutsche Bank, Puma, Rheinmetall, Hannover Rueck, HeidelbergCement, Adidas, MTU Aero Engines, Munich RE, Brenntag, Zalando, Merck, SAP and Siemens are down 1 to 2.5%.

RWE is gaining about 2.3%. Porsche is up by about 2.1%. Deutsche Telekom is rising 1.4%, while E.ON and Symrise, both are up nearly 1%.

In the French market, STMicroElectronics is down 4% and Unibail Rodamco is lower by about 3.3%. Stellantis is down 2.7% after the company reduced its excess vehicle inventory in the U.S. by over 100,000 units in late 2024.

Publicis Groupe, Teleperformance, Saint-Gobain, AXA, Schneider Electric, Airbus Group, ArcelorMittal, Safran, Capgemini, Hermes International, Accor, Legrand and Kering are down 1 to 2.5%.

Orange, Engie, TotalEnergies and Bouygues are up in positive territory.

Data from the Labor Department Friday showed U.S. non-farm payroll employment surged by 256,000 in December, after jumping by a downwardly revised 212,000 jobs in November.

Economists had expected employment to climb by 160,000 jobs compared to the addition of 227,000 jobs originally reported for the previous month.

The unemployment rate in the U.S. edged down to 4.1% in December from 4.2% in November. The rate was expected to come in unchanged.

German bond yields have increased 0.92% overnight to 2.5915%. The yield which was at 2.568% at the previous close ranged between 2.567% and 2.6105% in the day's trading, testing the highest levels since June 2024. Rising inflation expectations in the ECB survey and expectations of fewer rate cuts in the U.S. fueled the spike in yields.

The yield on the UK 10-year gilt climbed the highest level in over 16 years, rising to 4.9%, amid fading prospects of significant rate cuts by the Bank of England this year due to persistent concerns over inflation and economic uncertainties.