European stock markets retreated Wednesday, consolidating after recent gains with investors getting cautious. They were wary of rising bond yields while the earnings season continued.
The DAX in Germany traded 0.3% lower at 4 AM ET (0900 GMT). The CAC 40 in France fell 0.1%, and the U.K.’s FTSE index dropped 0.2%.
European markets have rallied strongly over the last week or so. That was amid growing hopes on the rollout of Covid-19 vaccines. That and the coming of spring will result in the reasonably prompt ending of the severe restrictions put in place.
Regional leaders have been careful about lifting restrictions. They were wary of new and more infectious strains of the virus in the U.K. and South Africa.
However, investors are now beginning to look cautiously at climbing bond yields. Higher rates could prompt some to rotate out of equities and into bonds.
In stock market news, Rio Tinto stock rose 1.5%. This came after the world’s biggest producer of iron ore announced a record $6.5 billion final dividend. That was also after reporting a 20% jump in annual profit in 2020.
On Tuesday, earnings from rivals BHP Group and Glencore had been received positively by the market.
Kering stock slumped 8.4% as sales at the French fashion house, the owner of Gucci, fell more than expected in Q4. Around the world, the coronavirus hurt tourist travel and the shoppers’ shopping habits.
British American Tobacco stock fell 6.2%. This came after the cigarette maker said cigarette volumes dropped 4.6% over the year. That was to end-December with revenues down 1.1%.
India’s Nifty 50 Down 0.68%
India stocks were lower after Wednesday’s close, with losses in Healthcare, IT, and Banking sectors leading them lower.
The Nifty 50 fell 0.68% at the close in NSE, while the BSE Sensex 30 index declined 0.77%.
The session’s outperformers on the Nifty 50 were Hero MotoCorp Ltd. They rose 3.54% or 122.45 points to trade at 3584.00 at the close.
Adani Port and Special Economic Zone Ltd gained 3.02% or 19.20 points to end at 655.75. In late trade, State Bank Of India was up 2.34% or 9.40 points to 411.75.
The session’s worst performers were Nestle India Ltd. They fell 2.76% or 476.05 points to trade at 16741.20 at the close.
Bajaj Finserv Ltd declined 2.54% or 265.60 points to end at 10195.00. Asian Paints Ltd. was down 2.53% or 62.10 points to 2388.15.