Latest News

Europe Markets: U.K. bond yields spike as Bank of England hikes and ECB stands pat


U.K. bond yields spiked higher while Germany’s rose as the Bank of England responded to above 5% inflation with a benchmark interest rate hike while the European Central Bank’s president flagged inflation worries even as it kept rates in negative territory.

The yield on the 10-year U.K. gilt TMBMKGB-10Y, 1.383% rose to 1.34% from 1.26% after the Bank of England made its second consecutive rate increase, taking the bank rate to 0.5%. While the rate hike was not a surprise, markets hadn’t anticipated four members of the nine-member monetary policy committee would support a half-point increase.

The yield on the 10-year German bund TMBMKDE-10Y, 0.148% also gained ground, rising to 0.11% from 0.04% after European Central Bank President Christine Lagarde declined to reiterate her December comment that interest rate hikes this year were unlikely.

Lagarde’s comments evaporated gains for the British pound GBPEUR, -0.50% vs. the euro, while the euro EURUSD, +0.68% rose to $1.1371.

All of the major European stock-market benchmarks were negative in afternoon trade, with the Stoxx Europe 600 SXXP, -1.39% slipping 1.2%.

Catering group Compass CPG, +5.68% jumped 8% after reporting a 39% surge in organic revenue growth in its fiscal first quarter.

SKF SKF.B, -8.77% slumped as the Swedish ball-bearings maker reported a core profit below expectations. ING INGA, -2.24% also dropped as the Dutch lender recorded a weaker profit than analysts estimated.

Why Facebook parent Meta’s stock is getting crushed

Previous article

Biden Wants to Nix a Trump-Era Retirement Plan Rule. So Does Wall Street.

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News