Powell disappointment hits European stocks, tech slides again

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 markets more forcefully to bring them down.

The comments fuelled a sell-off on Wall Street 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.