European stock indexes rose after a shaky start on Wednesday and Wall Street futures were mixed, as the optimism with which markets started the year showed some signs of waning while investors waited for key Federal Reserve meeting minutes to be released.
With investors expecting the Federal Reserve to begin hiking interest rates as early as March, U.S. Treasury yields jumped on Monday and Tuesday. But on Wednesday they pulled back slightly, with the U.S. 10-year yield at 1.6491% at 1205 GMT, compared to the previous session's peak of 1.686%, which was the highest since late November.
The shift in market focus back to prospects for U.S. rate hikes has revived a rotation out of growth-sensitive stocks, such as tech firms, into ones that offer income, such as financials and industrials.
Equities fell in the Asian session, following a 1.3% drop in the Nasdaq on Tuesday, as higher U.S. Treasury yields hurt technology stocks.
With investors expecting the Federal Reserve to begin hiking interest rates as early as March, U.S. Treasury yields jumped on Monday and Tuesday. But on Wednesday they pulled back slightly, with the U.S. 10-year yield at 1.6491% at 1205 GMT, compared to the previous session's peak of 1.686%, which was the highest since late November.
The shift in market focus back to prospects for U.S. rate hikes has revived a rotation out of growth-sensitive stocks, such as tech firms, into ones that offer income, such as financials and industrials.
