Oil, Interest Rate Outlooks Undercut European Bourses Midday
European bourses tracked moderately lower midday Tuesday as traders backed away from the tech sector, weighed higher interest rates, and awaited developments in the Persian Gulf.Oil stocks led gains on continental trading floors, while food shares also lagged.Yields on benchmark 10-year German bonds were higher, near 3.26%, striking the highest levels in 15 years.Front-month North Sea Brent crude-oil futures were steady, but holding above $90 a barrel.Additionally setting tone, investors eyed Wall Street futures flashing red amid largely lower closes overnight on Asian exchanges.In economic news, European Central Bank Chief Economist Philip Lane said that the continental inflation outlook will reflect food and oil prices, with the latter dependent on developments in the Middle East, in an interview with Irish broadcaster RTE.The pan-continental Stoxx Europe 600 Index was off 0.5% mid-session.The Stoxx Europe 600 Technology Index was down 1.7%, and the Stoxx 600 Banks Index lost 0.3%.The Stoxx Europe 600 Oil and Gas Index rose 0.4%, while the Stoxx 600 Europe Food and Beverage Index declined 0.6%.The REITE, a European REIT index, declined 0.5%.On the national market indexes, Germany's DAX was down 0.3%, while the FTSE 100 in London gained 0.1%. The CAC 40 in Paris was down 0.5%, while Spain's IBEX 35 advanced 0.2%.The Euro Stoxx 50 volatility index was up 5.6% at 16.27, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.
