Europe ends lower amid inflation fears

Friday, 26. February 2021 17:31

Major stock market indexes in Europe ended lower on Friday as a sudden surge in bond yields happened and made investors desert their usual market segment. When bond yields rise, it means that there is a fear of inflation among investors and it's causing them to speculate the Federal Reserve might change its policy sooner than expected, by either reducing bond purchases or by raising rates. That would be a negative for stocks.

Germany's DAX closed 0.67% lower as Deutsche Bank AG plunged 3.50%. The FTSE 100 declined 2.76% at the end of the day with Rightmove Plc falling by 7.03%. Meanwhile, France's CAC 40 lost 1.56%. ArcelorMittal SA was the worst performer dropping by 4.43%.

The euro fell 0.51% against the dollar, going for 1.21015 at 5:26 pm CET and the pound went down by 0.51% compared to the greenback to change hands at 1.39328 at the same time.

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Breaking the News / TF