EUROPEAN EQUITIES INCH HIGHER – Government bond yields rose on warnings of premature rate cuts from the European Central Bank
European shares edged lower as government bond yields rose on warnings of premature rate cuts from the European Central Bank.
The pan-European STOXX 600 was down 0.1% lower by 0934 GMT, dropping from a 0.2% rise in early trading.
Euro zone government bond yields rose during the session as investors digested comments from the ECB’s chief economist Philip Lane, who said in an interview on Saturday that cutting rates too fast could fuel a new wave of inflation.
The euro zone’s benchmark German 10-year yield last stood at 2.184%.
Data showed the German economy contracted 0.3% in 2023. The German DAX 40 was down 0.1%.
Analyst Oliver Roth of Oddo BHF bank said that while it had been a rather slow start to 2024, the DAX had recovered quite well.