{"id":440386,"date":"2026-10-20T00:40:16","date_gmt":"2026-10-19T17:40:16","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/european-stocks-close-lower-across-the-board-as-bond-yields-climb-440386\/"},"modified":"2026-10-20T00:40:16","modified_gmt":"2026-10-19T17:40:16","slug":"european-stocks-close-lower-across-the-board-as-bond-yields-climb","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/european-stocks-close-lower-across-the-board-as-bond-yields-climb-440386\/","title":{"rendered":"European stocks close lower across the board as bond yields climb"},"content":{"rendered":"<div>\n<p>As London\/European traders head home, the major European stock indices are closing lower across the board. Italy and Spain led the declines, but there was little separation, with all five major markets falling more than 1%. Not a good day.\u00a0<\/p>\n<p>The closing snapshot showed:<\/p>\n<ul>\n<li>\n<p>Germany\u2019s DAX: 25,319.78, down 302.84 points or 1.18%.<\/p>\n<\/li>\n<li>\n<p>France\u2019s CAC: 7,868.06, down 88.63 points or 1.11%.<\/p>\n<\/li>\n<li>\n<p>UK\u2019s FTSE 100: 10,764.70, down 117.21 points or 1.08%.<\/p>\n<\/li>\n<li>\n<p>Spain\u2019s Ibex: 19,039.30, down 287.00 points or 1.49%.<\/p>\n<\/li>\n<li>\n<p>Italy\u2019s FTSE MIB: 49,086.28, down 770.89 points or 1.55%.<\/p>\n<\/li>\n<\/ul>\n<p>After last week\u2019s gains, sellers had their say to start the new trading week.<\/p>\n<p>European Bond yields move higher with France leading the way.\u00a0<\/p>\n<p>European benchmark 10-year yields moved higher, with France leading the way:<\/p>\n<ul>\n<li>\n<p>Germany: 3.456%, up 3.6 basis points.<\/p>\n<\/li>\n<li>\n<p>France: 4.940%, up 8.6 basis points.<\/p>\n<\/li>\n<li>\n<p>UK: 5.443%, up 3.9 basis points.<\/p>\n<\/li>\n<li>\n<p>Spain: 4.080%, up 3.0 basis points.<\/p>\n<\/li>\n<li>\n<p>Italy: 4.582%, up 5.0 basis points.<\/p>\n<\/li>\n<\/ul>\n<p>The French move stands out. Its yield rose 5 basis points more than Germany\u2019s, widening the spread between the two countries. France&#8217;s 10 year yield is near the highest level going back to May 2002.<\/p>\n<\/p>\n<p style=\"font-style: normal;font-weight: 400;font-stretch: inherit;line-height: 22px;font-size-adjust: inherit;vertical-align: baseline;border: 0;margin: 0 0 20px;padding: 0;font-family: Inter, InterFallback, serif;letter-spacing: normal;text-indent: 0;text-transform: none;word-spacing: 0;white-space: normal;font-size: 16px\">There is a key budget vote in France set for tomorrow. The National Assembly is scheduled to hold a formal vote on the first part of the budget bill, covering government revenues, after parliamentary questions. The full budget vote is scheduled for November 17.<\/p>\n<p style=\"font-style: normal;font-weight: 400;font-stretch: inherit;line-height: 22px;font-size-adjust: inherit;vertical-align: baseline;border: 0;margin: 0 0 20px;padding: 0;font-family: Inter, InterFallback, serif;letter-spacing: normal;text-indent: 0;text-transform: none;word-spacing: 0;white-space: normal;font-size: 16px\">Tomorrow&#8217;s vote matters as a test of the government&#8217;s ability to deliver fiscal consolidation. A smooth passage would offer some relief and give the euro a boost, while a rejection or major concessions that weaken the deficit-reduction plan could put further pressure on French bonds and the euro.<\/p>\n<p>US stocks rebound, led by the Nasdaq<\/p>\n<p>As European traders head home, US stocks are trading higher, with the Nasdaq indices leading the way. The Dow is near unchanged, highlighting the stronger buying in technology shares.<\/p>\n<p>The latest snapshot shows:<\/p>\n<ul>\n<li>\n<p>Dow industrial average: 52,010.19, up 2.98 points or 0.01%.<\/p>\n<\/li>\n<li>\n<p>S&amp;P 500: 7,708.59, up 49.15 points or 0.64%.<\/p>\n<\/li>\n<li>\n<p>Nasdaq Composite: 26,523.44, up 383.41 points or 1.47%.<\/p>\n<\/li>\n<li>\n<p>Nasdaq 100: 29,671.88, up 484.34 points or 1.66%.<\/p>\n<\/li>\n<li>\n<p>Russell 2000: 2,734.95, up 13.58 points or 0.50%.<\/p>\n<\/li>\n<\/ul>\n<p>After last week\u2019s technology-led selling, buyers are taking a shot at a recovery. The Nasdaq 100 is leading the rebound, but one stronger session is only a start. Buyers now need follow-through to build confidence that the recovery has more room to run.<\/p>\n<p>US Treasury yields were also higher at the snapshot:<\/p>\n<ul>\n<li>\n<p>2-year: 4.776%, up 4.0 basis points.<\/p>\n<\/li>\n<li>\n<p>5-year: 4.942%, up 4.3 basis points.<\/p>\n<\/li>\n<li>\n<p>10-year: 5.138%, up 4.0 basis points.<\/p>\n<\/li>\n<li>\n<p>30-year: 5.471%, up 3.4 basis points.<\/p>\n<\/li>\n<\/ul>\n<p>Last week, the benchmark 10-year yield reached its highest level since March 2002 at 5.365%<\/p>\n<p>.<\/p>\n<\/p>\n<p>US homebuilders feel the pressure<\/p>\n<p>The US NAHB housing market index came in at 29, comfortably below the 50 level that separates favorable from unfavorable builder sentiment.<\/p>\n<p>The details showed weakness across all three components:<\/p>\n<ul>\n<li>\n<p>Current sales fell to 33 from 35.<\/p>\n<\/li>\n<li>\n<p>Expected sales over the next six months fell to 32 from 37.<\/p>\n<\/li>\n<li>\n<p>Prospective buyer traffic fell to 18 from 23.<\/p>\n<\/li>\n<\/ul>\n<p>Builders are working harder to get buyers through the door. Some 43% cut prices in October, the highest share during the 2020\u20132026 period. The average reduction remained at 6%, while 65% offered sales incentives.<\/p>\n<p>The message? Affordability remains a problem. Builders are cutting prices and offering incentives, but buyer traffic continues to weaken.<\/p>\n<p>Canadian inflation: Energy hotter, core cooler<\/p>\n<p>Canada\u2019s September CPI rose 3.1% year over year versus 3.2% expected and 3.0% previously. Monthly prices increased 0.1%, below the 0.2% estimate.<\/p>\n<p>The headline accelerated, but the underlying details were more encouraging:<\/p>\n<ul>\n<li>\n<p>CPI-median eased to 1.9% from 2.0%.<\/p>\n<\/li>\n<li>\n<p>CPI-trim slowed to 1.8% from 1.9%.<\/p>\n<\/li>\n<li>\n<p>CPI-common declined to 2.4% from 2.6%.<\/p>\n<\/li>\n<li>\n<p>Inflation excluding gasoline slowed to 2.2% from 2.4%.<\/p>\n<\/li>\n<li>\n<p>Grocery inflation eased to 1.7% from 2.8%.<\/p>\n<\/li>\n<\/ul>\n<p>Energy remains the problem area, with prices up 19.0% annually and gasoline up 27.8%.<\/p>\n<p>The softer core readings ease pressure on the Bank of Canada to raise rates. USDCAD initially rose from around 1.4075 to 1.4106 after the release. By the European close snapshot, however, it was near 1.4096, still down 0.29% on the day.<\/p>\n<p>Dollar mixed. Gold and oil lower<\/p>\n<p>The dollar was higher against the euro, yen, pound and Swiss franc, but lower against the Canadian, Australian and New Zealand dollars:<\/p>\n<ul>\n<li>\n<p>EURUSD: 1.1204, down 0.31%.<\/p>\n<\/li>\n<li>\n<p>USDJPY: 158.51, up 0.33%.<\/p>\n<\/li>\n<li>\n<p>GBPUSD: 1.3300, down 0.21%.<\/p>\n<\/li>\n<li>\n<p>USDCHF: 0.8268, up 0.35%.<\/p>\n<\/li>\n<li>\n<p>USDCAD: 1.4096, down 0.29%.<\/p>\n<\/li>\n<li>\n<p>AUDUSD: 0.6975, up 0.45%.<\/p>\n<\/li>\n<li>\n<p>NZDUSD: 0.5659, up 0.16%.<\/p>\n<\/li>\n<\/ul>\n<p>In other markets:<\/p>\n<ul>\n<li>\n<p>Crude oil: $98.64, down $0.41 or 0.41%.<\/p>\n<\/li>\n<li>\n<p>Gold: $4,140.03, down about $25.10 or 0.60%.<\/p>\n<\/li>\n<li>\n<p>Silver: $57.16, up $0.185 or 0.32%.<\/p>\n<\/li>\n<li>\n<p>Bitcoin: $81,660, down $342 or 0.42%.<\/p>\n<\/li>\n<\/ul>\n<p>Gold was lower alongside the rise in Treasury yields, while silver managed a modest gain. For European equity buyers, the stronger finish to last week has given way to broad selling to start this one.<\/p>\n<p>Curious about how markets really work? Explore our short videos explaining important financial concepts in simple terms.<\/p>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As London\/European traders head home, the major European stock indices are closing lower across the board. Italy and Spain led the declines, but there was little separation, with all five major markets&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-440386","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=440386"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440386\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=440386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=440386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=440386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}