European Stock Futures Lower; Rising US Treasury Yields Weigh By Investing.com – Investing.com

European Stock Futures Lower; Rising US Treasury Yields Weigh By Investing.com – Investing.com

© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open marginally lower Wednesday, handing back some of the recent gains with higher U.S. Treasury yields weighing on the tech sector. 

At 2:05 AM ET (0705 GMT), the contract in Germany traded 0.1% lower, in France dropped 0.1% and the contract in the U.K. fell 0.2%.

European indexes had started the new year on the front foot, with the pan-European index climbing to an all-time high amid optimism about the global economic recovery.

However, Europe is expected to follow the broadly negative tone in Asia overnight with investors fretting about rising U.S. Treasury yields and the impact this will have on the highly leveraged tech sector, the source of most of the gains on Wall Street over the last few years.

Benchmark touched a six-week high on Tuesday, five-year rates hit a pandemic-era high, and two-year note yields hit their highest since March 2020 on Monday.

This comes as much of Europe struggles to contain the latest wave of Covid-19 cases.

Data releases in Europe on Wednesday center around final data for the Eurozone’s services and manufacturing industries in December,