European Stocks Close Weak As Bond Yields Soar To 16-year High On Interest Rate Bets

(RTTNews) - European stocks closed notably lower on Tuesday with selling pressure gathering momentum past noon, as yields on U.S. long-term Treasury Notes climbed to 16-year high amid prospects of the Federal Reserve holding interest rates higher for longer to fight inflation.

Disappointing manufacturing activity data from several countries in the European region, and the U.K., continued to weigh on sentiment.

Rising wages in the euro zone are underpinning inflation in the bloc but wage growth will likely moderate in the coming months, ECB chief economist Philip Lane told an event in the Lithuanian capital Vilnius earlier today.

The pan European Stoxx 600 shed 1.1%. The U.K.'s FTSE 100 ended 0.54% down, Germany's DAX and France's CAC 40 declined 1.06% and 1.01%, respectively, while Switzerland's SMI lost 0.92%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Spain and Sweden ended sharp to moderately lower.

Russia and Turkiye bucked the trend and closed higher.

In the UK market, Carnival ended nearly 6% down, and Just Eat Takeway.com declined 5%. TUI, Burberry Group, Anglo American Plc, United Utilities, Antofagasta, Severn Trent, EasyJet, Pennon, BT, Glencore, IAG, Barratt Developments, Ferguson and Melrose Industries lost 2 to 4%.

Pearson, Smith DS, Intertek, HSBC Holdings, WPP, RightMove, Unilever, J Sainsbury and Bunzl posted moderate gains.

In the German market, Zalando ended more than 5% down. RWE, Siemens Energy, Vonovia, E.ON, Commerzbank, Adidas, Daimler Truck Holding, Bayer, Continental, Deutsche Bank, Volkswagen and MTU Aero Engines ended lower by 1.5 to 3%.

In Paris, Renault drifted down 5.6%. Unibail Rodamco and WorldLine ended down 4% and 3.8%, respectively. ArcelorMittal, Alstom, Vinci, Teleperformance, Capgemini, Bouygues, Engie, Michelin and Societe Generale also declined sharply