Rising yields keep Europe on edge, French operators fall
SPY•European shares were set for a muted open as investors weighed higher bond yields, firmer oil prices and expectations of further U.S. monetary tightening. Shares in French infrastructure operators were indicated around 3% lower after a report said the government plans to raise taxes on motorway and airport operators.
1. European markets
European shares were set for a muted open on Tuesday. Euro STOXX 50, DAX and FTSE futures edged up 0.1%-0.2%, while U.S. futures pointed to a slightly weaker Wall Street open. Markets priced in a more than 72% chance of a 25-basis-point Federal Reserve rate hike in October.
2. French operators under pressure
Shares in Vinci, Eiffage and airport operator ADP were called around 3% lower after a report said the French government plans to increase taxes on motorway and airport operators as part of its 2027 budget.
3. Other company news
Lindt cut its outlook, citing subdued consumer sentiment, rising price sensitivity and weak demand during a European heatwave; its shares were indicated 5% lower. An upgraded earnings outlook from Hapag-Lloyd could support sentiment toward peers Maersk and DSV, while Legrand raised its sales target.
