STOXX near 4-month low, Paris down 12% from August record
VGK•European shares fell sharply for a second day on Thursday as rising oil prices pushed bond yields higher. The STOXX 600 lost 0.9% to a near four-month low, while France’s CAC 40 was about 12% below its August record.
1. European shares fall
The pan-European STOXX 600 fell 0.9% to a near four-month low on Thursday, while the CAC 40 dropped to its lowest level in more than six months. The French benchmark was about 12% below its August record high.
2. Yields weigh on markets
A fresh surge in oil prices pushed bond yields higher, fuelling concerns about euro zone sovereign spreads and the region’s fiscal outlook. Banks slid 2% to their weakest level in more than three months as higher yields revived concerns about potential losses on sovereign debt holdings.
3. Sector and index moves
The Euro STOXX 50 was testing its 200-day moving average. Oil and gas shares rose 0.9%.
