Euro Sinks to 3-Month Low as European Stocks Stall on Yields
The pan-European STOXX 600 eased 0.09% to 638.08 points, surrendering gains it had built earlier in the session. Germany's DAX edged up 0.1% to 25,399.21, and Italy's FTSE MIB added 0.09% to 51,804.94.
Other major bourses finished lower. London's FTSE 100 dropped 0.45% to 10,636.71, France's CAC 40 retreated 0.53% to 8,035.87, and Spain's IBEX 35 shed 0.42% to 19,517.50.
The euro weakened 0.38% to $1.1328, its lowest since June 24, as investors weighed the possibility of further US Federal Reserve rate hikes and the toll of high energy costs on Europe.
Oil traded above $100 a barrel for part of the session, keeping inflation risks in focus. The yield on the 30-year US Treasury climbed to its highest since 2002. Higher bond yields can make equities less attractive and push up corporate borrowing costs.
The European Central Bank's inflation outlook also lingered in the background. In projections published earlier this month, the bank forecast euro area inflation of 3% for 2026 and 2.5% for 2027, both above its 2% target.
Fresh US data added to the picture. The Conference Board's consumer confidence index dropped to 81.9 in September, its lowest reading since 2014, while job openings fell by 256,000 to 7.079 million in August. Investors are now looking to this week's inflation and employment figures for further clues on the Fed's next move.
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