Stocks drift lower as yields rise
|Signs of strengthening US inflation have unnerved investors, putting pressure on stocks, while a new French PM might not be able to resolve the country’s difficulties, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
Stocks weaken in final session
Earlier gains have drifted away as US Treasury yields strengthen. Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve's final meeting of the year. The 10-year yield climbed to 4.36%, while the 2-year yield increased to 4.21%, reflecting concerns over sticky inflation. On Wall Street, stocks opened higher, driven by strong AI-driven optimism, but then began to lose ground. Broadcom surged over 16% following positive quarterly results and a confident outlook on AI opportunities”
French stocks lead the way lower
The CAC40, the poor performer of the past six months, continues to show signs of topping out. Macron may have found someone willing to take on the dubious honour of being prime minister, but few in the dealing rooms of the world think that the newly-appointed Bayrou has much chance of succeeding where Barnier failed, signalling more uncertainty ahead.
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