European stocks mostly higher amid steadying bond market jitters

Published 04/09/2025, 09:44
Updated 04/09/2025, 16:48
© Reuters

Investing.com - European shares closed mostly higher on Thursday on some stabilizing in recent bond market jitters.

The pan-European Stoxx 600 index had gained 0.7%, while the Dax in Germany also added 0.7% and the CAC 40 in France dipped by 0.3%. In the U.K., the FTSE 100 rose 0.4%.

Stocks in Europe have been volatile this week in the wake of a sell-off in longer-dated government debt in countries around the world, as investors fretted over debt-fueled fiscal challenges in many of these nations.

However, bond markets were somewhat calmed by comments from several Federal Reserve officials, including Governor Christopher Waller, which further bolstered wagers that the U.S. central bank will resume slashing interest rates at its next meeting later this month.

Meanwhile, an auction of longer-dated Japanese government debt saw tepid demand, but takeup was still enough to prevent fresh anxiety from gripping bond markets. The country’s 30-year bond yield had earlier spiked to an all-time peak. Yields tend to move inversely to prices.

Debt auctions are scheduled to take place later in the day in France and the United Kingdom, two countries which have been focal points in bond selling in Europe.

Traders were also gearing up for the release of the closely-monitored U.S. nonfarm payrolls report on Friday, which could provide a fresh glimpse into the state of the American labor market and potentially bets for impending Fed rate reductions.

On a sector-wide basis, travel and leisure was among the laggards, weighed down by disappointing returns from Jet2 (LON:JET2). The British budget airline said it now expects its full-year operating profit to be near the lower end of its guidance, sending its shares down by more than 13%.

Porsche (ETR:P911_p) was also moved down to the domestic mid-caps index, following a period where the German sportscar maker has grappled with sluggish demand in China and the looming threat of U.S. import tariffs. The stock was down by 0.8% in mid-morning dealmaking.

Gold slips from record high

Gold prices were lower in European trading, facing some profit-taking after the yellow metal touched record highs, as the dollar steadied ahead of more cues on the U.S. labor market and rate drawdowns.

Bullion hit a series of all-time peaks this week, amid growing conviction that the Fed will cut interest rates at its Sept. 16-17 gathering.

Safe haven demand for gold was also supported by fears over stretched government debt levels in the developed world.

Spot gold fell 0.3% to $3,551.36/oz, while gold futures for December fell 0.7% to $3,610.10/oz by 11:46 ET.

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