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Powell disappointment hits European stocks, tech slides again

The pan-European STOXX 600 fell 0.9% in early trading

Jerome Powell | World shares | Wall Street


Jerome Powell, chair of the US Federal Reserve. Photo: Reuters
Jerome Powell, chair of the US Federal Reserve. Photo: Reuters

Rising U.S. bond yields put European equities under pressure again on Friday after Federal Reserve Chair Jerome Powell’s remarks failed to soothe investor concerns about a recent surge in borrowing costs.

The pan-European STOXX 600 fell 0.9% in early trading, with shares of travel, mining, and financial services companies leading the declines.

While Powell said the rise in yields was “notable”, he did not consider it a “disorderly” move, or one that pushed long-term rates so high the Fed might have to intervene in more forcefully to bring them down.

The comments fuelled a sell-off on on Thursday, pushing the tech-heavy Nasdaq to erase its yearly gains. European tech shares also fell 1.0%, on course for their second weekly loss.

Oil stocks slipped as crude prices jumped to near 14-month highs after OPEC and its allies agreed not to increase supply in April. [O/R]

London Stock Exchange Group fell 3.6% despite posting steady full-year results for 2020 and announcing a 7% dividend increase.

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First Published: Fri, March 05 2021. 14:26 IST