European Stocks Hold Steady as Chinese Tech Rally Boosts Market Sentiment
European equities opened the week on a steady note as gains in Chinese technology stocks helped balance pressure from rising bond yields. The pan-European STOXX 600 index inched up 0.1%, supported by stronger manufacturing data, although momentum faded later in the session, according to market reports.
In Asia, investor sentiment was lifted by a sharp rally in Chinese tech shares. Alibaba’s Hong Kong-listed stock soared 18.5% after reports showed artificial intelligence drove robust revenue growth in its cloud business. The surge in Alibaba’s valuation signaled renewed optimism for China’s technology sector, which has faced regulatory headwinds in recent years.
Across the Atlantic, U.S. stock futures traded higher as Wall Street braced for a busy week of economic updates. Analysts are eyeing key U.S. data releases, including manufacturing and services surveys, jobs figures, and the highly anticipated August payrolls report on Friday. Market watchers believe fresh labour market signals could influence the Federal Reserve’s stance on interest rates.
Meanwhile, European bond markets came under pressure, with Germany’s 30-year yield climbing to a 14-year high at 3.38%. Benchmark 10-year yields also advanced to 2.76%, reflecting concerns about fiscal outlooks. Currency and commodity markets responded as the euro firmed 0.25% to $1.1711, gold hit a four-month high at $3,489.50 per ounce, and oil prices rose slightly on supply worries linked to Russia-Ukraine tensions and U.S. tariff risks.
Political uncertainty in France also weighed on investor confidence. Prime Minister Francois Bayrou is set for critical talks with rival parties ahead of a confidence vote next week, raising questions about the stability of Europe’s second-largest economy. The outcome of the political negotiations is expected to add further volatility to European markets in the days ahead.
Source: Punch