EU Stock Futures Mixed; Treasury Yields Rise

Optimism is growing that a global economic recovery from the coronavirus pandemic is just around the corner. On Monday, EU stock markets opened mixed, as higher Treasury yields discourage investors. That’s even as hopes for a global economic recovery from the pandemic are growing.

In Germany, the DAX futures contract traded 0.3% lower at 2:05 AM ET (0705 GMT). In France, CAC 40 futures climbed 0.8% and in the U.K., the FTSE 100 futures contract fell 0.2%.

In the first two months of 2021, China’s exports surged up over 60% in dollar terms. That indicates strong global demand for manufactured goods.

Furthermore, over the weekend, the U.S. Senate passed the $1.9 trillion stimulus package, proposed by President Joe Biden earlier this year. It is likely that this bill will be passed into law before enhanced jobless benefits expire on March 14.

Equity markets were heightened over the last few months. This came from expectation that loose fiscal and monetary policy will give economic recovery a powerful boost. However, fears over rising inflation and interest rates grew.

In recent weeks, the yield on the benchmark Treasury 10-year note has risen sharply by 1.62% on Friday. This was after it started the calendar year below the 1% mark, and now it stands at 1.59%.

The rapid surge has also weighed on stocks with high valuations. The high-growth stocks in particular had contributed much to the last few months’ equity market gains.

Israel Stocks Ended Higher, TA 35 up 1.53%

Elsewhere on Sunday, Israel stocks were higher after the close. Leading shares higher were gains in the Oil & Gas, Banking and Financials sectors.

The TA 35 gained 1.53% at the close in Tel Aviv.

The session’s best performers on the TA 35 were Nice Ltd. They rose 3.29% or 2370 points to trade at 74430 at the close. 

Moreover, Perrigo added 2.90% or 390 points to end at 13860. Mizrahi Tefahot was up 2.87% or 234 points to 8395.

The session’s worst performers were Energix. They fell 0.88% or 10 points to trade at 1126 at the close. 

Shufersal shed 0.82% or 22 points to end at 2668, while Liveperson slipped 0.64% or 120 points to 18570.

On the Tel Aviv Stock Exchange, rising stocks exceeded declining ones by 274 to 164, and 18 ended unchanged.

In other news, soaring crude prices on Monday following attacks on key Saudi Arabian oil facilities, will put oil majors in the spotlight.