BLOOMBERG.COM
Banks led gains in European equities while bonds across the region followed Treasuries lower as investors absorbed the Federal Reserve’s plans to pursue both higher interest rates and balance-sheet reduction in the coming months. The Stoxx Europe 600 Index was also boosted by the previous session’s drop in the euro, while lenders including Intesa Sanpaolo SpA benefited from the prospect of higher yields. The U.S. central bank set an October start for shrinking its balance sheet and maintained a forecast for one more rate increase this year. The yen touched a two-month low as the Bank of Japan kept its monetary stimulus unchanged. As the 10-year Treasury yield edged further toward 2.30 percent almost all government bond yields in Europe followed it higher. The dollar advanced and West Texas crude fell.
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Banks led gains in European equities while bonds across the region followed Treasuries lower as investors absorbed the Federal Reserve’s plans to pursue both higher interest rates and balance-sheet reduction in the coming months. The Stoxx Europe 600 Index was also boosted by the previous session’s drop in the euro, while lenders including Intesa Sanpaolo SpA benefited from the prospect of higher yields. The U.S. central bank set an October start for shrinking its balance sheet and maintained a forecast for one more rate increase this year. The yen touched a two-month low as the Bank of Japan kept its monetary stimulus unchanged. As the 10-year Treasury yield edged further toward 2.30 percent almost all government bond yields in Europe followed it higher. The dollar advanced and West Texas crude fell.
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