(Reuters) – European shares fell on rising government bond yields after the U.S. Federal Reserve cut its forecast for just one rate cut this year.
The pan-European index was down 0.6% by 11:10 a.m., after closing up nearly 1% in the previous session.
The Fed kept interest rates on hold yesterday and delayed the possible start of a rate cut in December, forecasting just a quarter-point cut this year, down from three expected in March.
Government bond yields rose in the Eurozone, with the 10-year German Bund yielding 2.556%. (GVD/EUR)
Separately, global index provider MSCI decided yesterday it would not include European Union debt in its sovereign bond indices.
Most sectors recorded declines, with interest-sensitive real estate falling -0.7%.
The automotive sector lost 2.1%, leading sectoral declines. Stellantis ( BIT: ) fell 2.9%, maintaining its 2024 financial outlook.
Among individual stocks, Wise is down 14.6% at the bottom of the STOXX 600 after the British remittance company forecast underlying earnings growth of 15% to 20% this year, after reporting 31% in late March. Slowdown from %.
Lufthansa is down 5% after JPMorgan put the German flag carrier as a negative catalyst.
BT gained 2.7 percent after Mexican tycoon Carlos Slim bought a 3.16 percent stake in Britain’s biggest broadband and mobile operator.
(Translated by Camila Bori; Editing by Stefano Bernabe)
