European Markets Hold Near Two-Week Lows
European stock markets traded relatively flat on Wednesday following sharp pressure in the previous session. The Stoxx Europe 600 index remained near a two-week low after recording its largest daily drop in nearly a month on Tuesday.
Movements in the region's major indices remained subdued. Germany's DAX fell about 0.2%, while France's CAC 40 edged up roughly 0.2%. The UK's FTSE 100 and Spain's IBEX 35 traded relatively flat, indicating investor reluctance to take large positions following the earlier sell-off.
Market pressure has not fully dissipated, as a surge in global bond yields has raised funding costs and weighed on stock valuations. Investors are increasingly wary of interest-rate-sensitive stocks after long-term yields in several developed nations hit multi-year or even multi-decade highs.
Sentiment remains clouded by tensions in the Persian Gulf and high oil prices. The risk of energy supply disruptions stemming from the US-Iran conflict has reignited inflation concerns, adding pressure to the European economy, which is highly sensitive to fluctuations in energy costs.
Market attention has now shifted to signals from ECB President Christine Lagarde and the minutes from the Federal Reserve's July meeting. Investors are keen to see whether central banks will focus more on resurging inflation risks or the emerging signs of weakening economic activity.
Newsmaker Analysis: European markets remain in a consolidation phase following the sharp sell-off. A drop in yields or more dovish signals from central banks could pave the way for a technical rebound. However, if oil prices spike again and yields remain high, pressure on European stocks could persist, particularly in sectors sensitive to consumer spending and funding costs. (asd)
Source: Newsmaker.id
