## European Stock Markets Rise Amid Technology Shares Boost
European stock markets witnessed an upward trend on Tuesday following conservative gains at the week’s commencement. The Stoxx 600 index provisionally concluded 0.7% higher, cutting back earlier gains. All sectors saw a rise with technology stocks taking the lead with a 2.1% increase.
Ubisoft Entertainment, a French game publisher, enjoyed a 9% surge in its shares after Microsoft announced it would relinquish several gaming rights to Ubisoft as part of a new deal submitted to the UK regulators for its acquisition of Activision Blizzard.
## Bond Selling Triggers Rise in Treasury Yield
In the overnight trade, bond selling propelled the 10-year U.S. Treasury note yield to its peak since 2007. Concurrently, the 30-year yield reached its highest level since 2011. A rise in bond yields typically indicates a decrease in stock prices.
Rupert Thompson, Chief Economist at Kingswood Group, voiced his concerns over this during an interview with CNBC’s Squawk Box Europe. He stated that the most significant risk to equities in the coming months could stem from bond yields at these levels, as “cash is now yielding 5% in the States, short-dated bonds are yielding 5% plus, so equities for the first time in a long time have actually got some real competition.”
Thompson also mentioned that bond market movements are indicative of a pushback on expectations for substantial Federal Reserve rate cuts next year, though opinions on the cause remain divided.
## Asian and U.S. Markets
Asia-Pacific markets closed higher on Tuesday. Meanwhile, U.S. stocks wavered around the flatline after the Nasdaq Composite and the S&P 500 broke a four-day negative streak. These movements occurred in anticipation of Nvidia’s earnings, scheduled to be released on Wednesday.
## Monitoring European Natural Gas Prices
Investors are keeping a close eye on European natural gas prices, which saw a sharp rise on Monday and continued to climb on Tuesday. This hike is due to the threat of strike action in Australia, which could disrupt 10% of the world’s liquefied natural gas flows.
Meg O’Neill, CEO of Woodside Energy, expressed optimism in an interview with CNBC. She believes that the current tone of discussions could help avoid significant industrial action.
On the geopolitical front, the BRICS summit is taking place in Johannesburg, with the leaders of Brazil, China, India, and South Africa in attendance. Russia is being represented by Foreign Minister Sergey Lavrov.
Original Story at www.cnbc.com – 2023-08-22 15:41:00
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