, and Deutsche Bank declined more than 2%, a reversal of the sector’s late-summer rebound. And an earnings miss by heavy equipment maker Deere & Co. added to the risk-off mood.
European shares fell on Friday and posted a weekly loss as the highest-ever jump in German producer prices in July added to gloom over the economic outlook. The pan-European STOXX 600 ended 0.8% lower.“When market participants start to return from their holidays and look back…they will find central banks still far from having achieved their goals of reining in inflation,” ING rates strategists said in a note to clients.
US Treasury yields also rose on Friday, mimicking European bonds’ own sell-off on inflationary fears. Next week, investors will be paying close attention to minutes from the European Central Bank’s July meeting, as well as comments by Fed Chair Jerome Powell when he addresses the annual global central banking conference in Jackson Hole, Wyoming, on Friday, August 26.