Elevated yields keep European shares under pressure

Luxury stock shine in early trading

Photograph: iStock

Photograph: iStock

 

European shares slipped again on Wednesday as US Treasury yields hit new highs, while luxury stocks stood out on upbeat trading updates from Richemont and Burberry.

The pan-European Stoxx 600 index skidded 0.1 per cent by 0812 GMT after hitting a one-week low in the previous session.

The US 10-year and five-year Treasury yields held near two-year highs, while global tech stocks sold off as investors fretted over inflation and braced for tighter US monetary policy.

Retail stocks outperformed the benchmark, jumping 1.7 per cent, after a slew of shining earnings results.

British luxury brand Burberry advanced 3.8 per cent after saying a strong performance in outerwear and leather goods and a material improvement in Asia and Europe accelerated growth in its quarterly full-price sales.

Cartier owner Richemont climbed 6.9 per cent after the world’s second largest luxury group said strong demand for its jewellery and watches in the Americas and Europe helped quarterly sales rise by nearly a third.

ASML Holding NV, a key supplier to computer chipmakers, gained 1.4 per cent after posting better-than-expected quarterly profit and saying it expected sales growth of 20 per cent in 2022. – Reuters