Europe open: Shares fall as rising bond yields weigh; SAS slumps
European shares joined the global mood of misery on Thursday, following US and Asian markets into the red as rising bond yields weighed on equities and investors nervously eyed key US and eurozone inflation data on Friday.
The pan-regional benchmark Stoxx 600 index was down 0.15% in early deals after recording its worst sessions of the month over the last two days and closing Wednesday at its lowest level since May 8.
Investors will now be watching eurozone inflation data for any clues as to how many times the European Central Bank will cut interest rates this year beyond its expected first cut at its June meeting next week.
That news will be followed by the US personal consumption expenditures price index report - the Federal Reserve’s preferred inflation gauge. Markets have priced in just one cut this year after minutes from the Fed’s most recent meeting and hawkish comments from policymakers expressing concerns over persistent, or "sticky" inflation.
In equity news, shares in Auto Trader surged as the car marketplace specialist said its new financial year had got off to a strong start, after it posted in jump in annual sales and profits.
Mining stocks were lower after Australian giant BHP walked away from its £38.6bn plan to take over rival Anglo American.
Scandinavian airline SAS slumped 13% after reporting a net loss of 2.9bn Swedish kroner ($271 million) in the quarter to April, higher than the SEK 1.52bn loss reported a year earlier and despite a 12% increase in revenue to SEK 9.9bn.
In its outlook, the airline said it intends to complete its restructuring proceedings in Sweden and the US “as soon as possible,” with a target of summer 2024.
Reporting by Frank Prenesti for Sharecast.com