Breaking News
0
Ad-Free Version. Subscribe now to follow markets, faster and distraction-free. More details

UPDATE 2-European shares end lower on tech losses as bond yields weigh

Stock MarketsFeb 23, 2021 18:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

* Tech stocks lead declines for a second day
* Total gains on stake sale of wind and solar farms
* High treasury yields in focus
* Bank stocks gain

(Updates to market close)
By Shashank Nayar and Ambar Warrick
Feb 23 (Reuters) - European shares ended lower on Tuesday as
high sovereign bond yields pressured heavyweight sectors such as
technology, while a batch of mixed corporate earnings cast doubt
over the pace of a post-COVID-19 recovery.
The benchmark euro zone stock index .STOXX was down 0.4%,
with tech stocks .SX8P leading declines for a second straight
session as they retreated further from 20-year highs.
A recent spike in sovereign bond yields also weighed on
stocks, as higher returns in fixed income offered investors a
safer alternative to relatively riskier equities.
Technology stocks in particular have also been viewed as
expensive by investors after their outperformance through the
COVID-19 pandemic.
Still, bank stocks .SX7P benefited from the rise in
borrowing rates, with Spain's bank-heavy index .IBEX adding
1.7%.
"Investors are cautiously optimistic about the rise in U.S.
bond yields and what that tells us about inflation trajectories,
while German shares seem to be weighing on the wider European
market as tech stocks weaken further with the DAX being a
tech-focussed index," said Michael Hewson, an analyst at CMC
Markets.
Core European government bond yields rose despite
indications of discomfort from European Central Bank President
Christine Lagarde with the recent surge in yields. GVD/EUR
But U.S. yields retreated slightly after U.S. Federal
Reserve Chair Jerome Powell downplayed concerns over
inflationary pressures and reiterated continued monetary
support. European stocks have rallied sharply off pandemic-driven
lows hit last year, but have been unable to reach pre-COVID
highs on doubts over a euro zone economic recovery due to fresh
lockdowns in major countries.
Among individual movers, HSBC Holdings HSBA.L dropped 0.8%
after its annual profits fell sharply due to the pandemic, while
it unveiled a revised strategy focused mainly on wealth
management in Asia. Swiss packaging firm SIG Combibloc Group SIGNC.S bottomed
out the STOXX 600 after its annual core earnings missed
estimates. German health care group Fresenius FREG.DE slipped after
it narrowed its 2021 sales growth forecast and said it would
launch a cost-cutting program, while cement-maker
HeidelbergCement HEIG.DE dropped 2.3% even after preliminary
results showed core profit was up 6% last
year. French energy group Total TOTF.PA gained more than 2%
after it agreed to sell stakes in some wind and solar farms to
Credit Agricole Assurances CAGR.PA and Banque des Territoires.

UPDATE 2-European shares end lower on tech losses as bond yields weigh
 

Related Articles

Rocket Shares Fall Back to Earth on High Volatility
Rocket Shares Fall Back to Earth on High Volatility By Investing.com - Mar 03, 2021

By Liz Moyer Investing.com -- Rocket Companies Inc (NYSE:RKT) shares tumbled 27% after a wild ride this week, and at least one analyst is throwing up the caution sign. The consumer...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email