European stocks down as Treasury Yields drop to 19-month Low

Banks dragged the Stoxx Europe 600 index lower, with the benchmark paring some losses after data showed euro-area economic confidence unexpectedly improved in May.

May 28, 2019 10:05 IST India Infoline News Service

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European stocks and US equity futures fell as traders returned from US and UK holidays with a cautious outlook. The dollar advanced with Treasuries.

Banks dragged the Stoxx Europe 600 index lower, with the benchmark paring some losses after data showed euro-area economic confidence unexpectedly improved in May. In Asia, shares climbed in Japan and China.

Further, Ten-year Treasury yields fell to their lowest levels since October 2017 as the securities returned to trading, after President Donald Trump declared that the U.S. was “not ready” to reach a trade deal with China. The offshore yuan weakened.

Escalating tensions over the U.S.-China trade war and stalled talks has soured sentiment in May for risk assets. That’s driven sovereign bonds higher and pushed global stocks toward their first monthly decline of 2019. Trump said on Monday during a state visit to Japan that American tariffs on goods from China “could go up very, very substantially, very easily,” while over the weekend the Asian nation pushed back at the perception that the levies were hurting its economy.

Source: Bloomberg

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