LONDON – European markets retreated on Friday after rising bond yields rekindled concerns over stock valuations, while a US Federal Reserve decision not to extend a pandemic-era rule that allowed banks to relax capital levels, hit even more risky assets.
The pan-European Stoxx 600 fell 1.1% during afternoon transactions, with banks falling 2.7% to drive losses as all sectors except utilities fell in the red.
US stocks fell in the open on Friday after the Fed refused to extend a rule that expires at the end of the month, which eased the additional leverage ratio for banks during the pandemic.
European equities began the day with weak delivery from Asia-Pacific, where equities fell mostly during Friday’s trading after Thursday’s state sell-off. Following the most recent monetary policy meeting, the Bank of Japan announced a series of measures that included extending the range in which the yield on 10-year Japanese government bonds is allowed to fluctuate from the target level to plus or minus 0.25%.
Oil prices are also in the spotlight after a drop on Friday, as reports of new waves of coronavirus infections and additional lock-in measures in Europe have dampened the outlook for crude oil demand.
Germany and France are among the countries resuming the launch of the AstraZeneca / Oxford University Covid-19 vaccine on Friday, after British and European drug regulators recommended its continued use due to concerns about a small number of developing recipients. blood clots.
In terms of data, British consumer sentiment peaked at a one-year high in March, according to a GfK poll, in hopes of an imminent economic recovery as the country tries to break the deadlock nationwide in the coming months.
In terms of individual stock price movement, TeamViewer fell 12% during afternoon trades after the German remote software company cut its 2021 guidelines.
Danish IT consultancy Netcompany rose 3% after securing a contract to develop Denmark’s coronavirus passport for use in May, according to reports in Denmark.
– Yun Li and Jesse Pound from CNBC contributed to this report.
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