Mining, tech sectors keep European stocks under pressure

European shares inched lower in early deals on Monday, weighed down by miners as investors fretted about a sharp economic slowdown in China due to prolonged COVID-19 curbs, while surging U.S. bond yields kept technology shares under pressure. The pan-European STOXX 600 index slipped 0.1% by 0711 GMT, hovering near its lowest level since mid-March hit on Friday.


Reuters | Updated: 09-05-2022 12:54 IST | Created: 09-05-2022 12:53 IST
Mining, tech sectors keep European stocks under pressure

European shares inched lower in early deals on Monday, weighed down by miners as investors fretted about a sharp economic slowdown in China due to prolonged COVID-19 curbs while surging U.S. bond yields kept technology shares under pressure.

The pan-European STOXX 600 index slipped 0.1% by 0711 GMT, hovering near its lowest level since mid-March hit on Friday. Miners fell 1.6%, leading sectoral losses in morning trade, as Chinese iron ore futures plunged more than 6% on concerns about demand in the world's second-largest economy.

Tech stocks fell 1.0% as U.S. bond yields surged to fresh highs on bets for faster interest rate hikes from the Federal Reserve to combat a surge in inflation. Chipmaker Infineon slipped 2.2% despite lifting its full-year outlook as it benefits from a global shortage of semiconductors.

Dutch postal firm PostNL slumped 12.1% after it cut its full-year forecast and reported a 75% drop in core profit, warning that economic uncertainty, growing inflation and pressure on e-commerce volumes make 2022 "more challenging than previously anticipated."

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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