European stocks opened sharply lower on Wednesday on the back of surging bond yields and oil prices as investors fretted about inflation.
The pan-European Stoxx 600 index fell 1.28% 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.
Nasdaq futures were down 1.13% 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 equity news, shares in banks HSBC and Commerzbank both gained more than 2%.
Danish medical device company Ambu slumped 8.6% after warning that revenue growth and earnings will fall below previous guidance.
Deutsche Telekom fell 4.1% after Goldman Sachs sold shares worth €1.58bn in a SoftBank- structured finance deal.
Bayer rose after the German agricultural and pharmaceuticals firm won its first trial over claims its Roundup weedkiller causes cancer.
Tesco jumped 5% as the UK supermarket chain lifted its full-year outlook and launched a £500m share buyback.
Shares in recruiter PageGroup rose 7.59% after the company lifted its guidance for full-year operating profit on Wednesday as it reported a jump in third-quarter gross profit.
