European Shares Poised For Soft Start As US Bond Market Jitters Persist

(RTTNews) - European stocks are seen opening flat to slightly lower on Friday as doubts persist over rescue efforts to address liquidity issues in the U.S. government bond market.

The Treasury's move to boost its government debt buybacks failed to calm markets. With the U.S. national debt doubling over the last decade to hit a record $40 trillion and Brent crude prices surging above $93 a barrel amid the impasse in talks for deal end the U.S.-Iran war, analysts say that any effect on bond yields would prove temporary.

Asian markets were mixed in cautious trade. U.S. stock futures ticked higher after Wall Street suffered its steepest decline in three weeks overnight.

The U.S. dollar index wobbled and was set for a weekly loss as U.S. bond yields steadied after rebounding from lower levels on Thursday amid fears the U.S. Treasury's plan to curb borrowing costs is just a short-term fix.

Gold edged up to $4,538 an ounce and was on track for a third consecutive weekly gain, supported by a weakening dollar and expectations of controlled longer-term Treasury yields.

Brent crude futures traded above $93 a barrel and were set for a second consecutive weekly gain amid the continuing standoff between Washington and Teran over control of the Strait of Hormuz.

U.S. Treasury Secretary Scott Bessent announced on Thursday that Washington will impose "the toughest sanctions in history" on Iran, with full details of the sanctions expected next week.

U.S. stocks fell sharply overnight as Walmart's quarterly comparable sales missed estimates and crude oil prices jumped over 2 percent to their highest levels in nearly a month, fueling inflation worries.

Bond yields resumed their upward trend despite Treasury Secretary announcing plans to potentially further increase the volume of government Treasury bond buybacks.

The Dow tumbled 1.3 percent, the tech-heavy Nasdaq Composite shed 1 percent and the S&P 500 declined 0.9 percent.

European stocks closed mostly lower on Thursday after U.S. President Trump announced 'crushing' economic operation against Iran and its trading partners and Tehran called the threats a "diversion from America's own crisis."

The pan-European STOXX 600 slid 0.1 percent. The German DAX dipped 0.4 percent and France's CAC 40 slipped 0.6 percent while the U.K.'s FTSE 100 finished marginally higher to extend gains for a third day running, led by mining and energy stocks.