Why it matters
- European shares rose for a third straight session as government bond yields eased from multiyear highs.
- France's 10-year yield fell about 15 basis points, and its gap over Germany narrowed to about 1.25 percentage points.
- Traders scaled back bets on more European Central Bank rate increases.
Session recap: what happened in this region's trading day, with sources.
European shares rose on Tuesday, Oct. 6, as government bond yields eased from multiyear highs. The STOXX Europe 600 traded at 636.79 around 12:40 GMT, up about 0.5% from Monday's close of 633.62, according to Yahoo Finance data. Reuters, via MarketScreener, said it was on track for a third straight daily gain.
| Index | Level, about 12:40 GMT | Change |
|---|---|---|
| STOXX Europe 600 | 636.79 | +0.50% |
| Germany's DAX | 25,401.98 | +0.59% |
| France's CAC 40 | 7,865.09 | +0.40% |
| U.K.'s FTSE 100 | 10,525.65 | +0.26% |
Source: Yahoo Finance chart data. Intraday levels; changes are from Monday's close.
Why are European bond yields falling?
Investors are reassessing last week's sell-off. France's 10-year yield fell 15.3 basis points to 4.708%, and Germany's 10-year Bund yield fell 4.6 basis points to 3.45%, Reuters reported. The gap between the two narrowed to 125 basis points from 158.67 last week.
Trading Economics said France's yield had reached a more than two-decade high above 5% late last week, while Germany's yield retreated from 17-year highs. Our Friday Europe recap has the background on France's budget.
What does this mean for ECB rates?
Traders now see fewer increases. Markets price about an 80% chance of another European Central Bank rate rise before year-end, according to Trading Economics. That is down from expectations of three more hikes through March, Reuters reported.
Movers: Genmab leads health care
Danish biotech Genmab jumped 9.26% to a three-year high in early trade after a late-stage trial with partner AbbVie showed its combination treatment reduced the risk of disease progression or death in lymphoma patients, Reuters reported. Health care stocks rose 1.4%.
Italy's Technoprobe gained 4.5% after J.P. Morgan started coverage with an "overweight" rating. Spain's Neinor Homes rose 4.2% after raising its outlook for 2026 and 2027, according to the report.
Oil and the euro
Brent crude fell 2% to $97.96 a barrel, Reuters reported. The euro rose 0.2% to $1.1239 after hitting a 17-month low, the report said, and later traded near $1.1266, Yahoo Finance data showed. Spain's snap election call and France's debt load are weighing on the currency.
What comes next?
The U.S. session follows. Our day-ahead guide covers the August trade report, Fed speakers and earnings. Asia's session is in our Asia Tuesday recap, and more coverage is on the Europe page.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- MarketScreener (Reuters), European shares gain as Genmab jumps, bond yields retreat
- MarketScreener (Reuters), World shares advance as oil falls, bond yields retreat
- Trading Economics, Germany 10-year Bund yield
- Trading Economics, France 10-year OAT yield
- Yahoo Finance, STOXX Europe 600 chart data
- Yahoo Finance, DAX chart data
- Yahoo Finance, CAC 40 chart data
- Yahoo Finance, FTSE 100 chart data
- Yahoo Finance, EUR/USD chart data