European stocks continued their slide on Wednesday on the back of surging bond yields and oil prices as investors fretted about inflation.
The pan-European Stoxx 600 index fell 1.94% with all major regional bourses lower. US and German bond yields rose to their highest in more than three months leading investors to dump tech stocks and move towards banks as higher rates make future profit valuations less attractive. Shares in banks HSBC and Commerzbank both gained.
Nasdaq futures were down 1.37% ahead of the US opening in a sign the tech selloff would continue this afternoon. Investors were also eyeing the US ADP private payrolls report for September set to be released later Wednesday.
In economic news, German industrial orders fell more sharply than expected in August as overseas demand weakened. Spanish industrial output rose 1.8% year-on-year in August, well below the 3.5% forecast
Danish medical device company Ambu slumped 7.6% after warning that revenue growth and earnings will fall below previous guidance.
Homeserve fell 6.59% after a downgrade to ‘underperform’ from ‘outperform’ at Exane.
Deutsche Telekom fell 5.5% after Goldman Sachs sold shares worth €1.58bn in a SoftBank- structured finance deal.
Tesco jumped 4.68 % as the UK supermarket chain lifted its full-year outlook and launched a £500m share buyback.
Shares in recruiter PageGroup rose 7.1% after the company lifted its guidance for full-year operating profit on Wednesday as it reported a jump in third-quarter gross profit.
