Stock market: Europe sees further falls; Milan down 1 per cent as oil prices surge and bond yields hit record highs

(Il Sole 24 Ore Radiocor) - European stock markets are falling, whilst oil prices and government bond yields continue to rise, ahead of the European inflation figures. Milan’s FTSE MIB, which got off to a slow start, is now down 1 per cent, with banks showing increased weakness: Mediobanca leads the sector’s declines at -1.85 per cent, followed by MPS at -1.81 per cent. The Frankfurt DAX (-1 per cent), the London FTSE 100 (-0.9 per cent) and the Madrid IBEX (-0.8 per cent) are also trading at levels similar to the FTSE MIB. The CAC in Paris (-0.3 per cent) and the AEX in Amsterdam (-0.4 per cent) have also turned negative. Weighing on the markets is the surge in crude oil prices due to the escalation in the Middle East: Brent rose by 1.9 per cent to $92.23 per barrel, whilst WTI rose by 2 per cent to $87.45. Global bond yields also continued to rise, reaching their highest levels in twenty years. The yield on the 10-year Treasury note rose to 4.79 per cent, its highest since January 2025. The yield on the 10-year BTP rose to 4.17 per cent, its highest since November 2023, whilst the German Bund yield rose to 3.34 per cent, its highest since April 2011.

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