European stock markets started the last quarter of the year with lossespressured by the increase in bond yields and by data that showed that the activity of factories in the euro zone continues to register a general decline.
The pan-European STOXX 600 index reversed its initial gains and fell 1% this Monday, marking its intraday low since the end of March.
He 10-year German government bond yield, the euro zone benchmark, rose to 2.922%approaching 12-year high reached last week.
“(The STOXX decline) is closely related to what we are seeing in fixed income markets right now. Yields continue to rise, which is probably worrying some investors,” said Craig Erlam, market analyst at OANDA.
Eurozone manufacturing activity remained mired in a deep and widespread recession in September, according to a survey that showed demand has contracted at a pace rarely surpassed since data first began being collected in 1997.
The final Purchasing Managers’ Index (PMI) euro zone manufacturing sector, prepared by S&P Global, fell to 43.4 points in September, compared to 43.5 in August, matching the preliminary estimate.
All European indices were trading in the red and the German DAX lost 0.9%.
Shares in voucher and card provider Edenred plummeted 11%, following a French minister’s comments about a possible cap on food voucher commissions in France. The shares of its rival Sodexo lost 3.3%.
BAE Systems shares added 1.1% after Britain awarded the defense firm a £4 billion ($4.89 billion) contract as part of the AUKUS program with Australia and the United States to build attack submarines.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
