European stock markets have also bounced higher, while government borrowing costs retreated, as oil prices slid on reports that more supplies are passing through the Gulf than though. The UK’s FTSE 100 index rose 0.36% to 10,697, up nearly 40 points. Germany’s Dax gained nearly 0.7%, France’s CAC rose 0.6%, Italy’s FTSE MiB advanced 0.74% and Spain’s Ibex is up 0.5%.
The pan-European Stoxx 600 rose 0.65%, led by technology and travel stocks. The tech sub-index increased 1.9% as chip-linked stocks Soitec jumped 4.6% and Aixtron advanced 3.9%. France’s Soitec manufactures substrates that are used to make semiconductors, used in smartphones, tablets and computers while Germany’s Aixtron, founded by university researchers in 1983 as a spin-out from RWTH Aachen University, also produces components for chipmakers.
US stock futures are pointing to a stronger open on Wall Street later, suggesting the tech-heavy Nasdaq could rise almost 1%. Brent crude, the global oil benchmark, is down 2% (or $2.1) at $101.78 a barrel, the lowest in more than a week. This has triggered hopes of lower inflationary pressures, and pushed government bond yields lower after Friday’s turmoil, sparked by expectations of a steeper path for interest rates.
The yield, or interest rate, on the 10-year UK gilt fell nearly 7 basis points to 5.241%. Italy’s 10-year yield dropped 9 basis points to 4.355%, after jumping 10bps on Friday. The equivalent French yield fell 10bps to 4.47%, after rising 12.5bps on Friday.
The German 10-year yield eased 5ps to 3.47%, wiping out Friday’s increase.
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