European stocks largely lower; key inflation data looms

Investing.com - European stock markets largely fell Thursday, with rising global bond yields hitting sentiment ahead of the release of highly anticipated inflation data at the end of the week.Equities have retreated in Europe, following the weakness on Wall Street and the losses in Asia overnight, with sentiment pressured by rising U.S. Treasury yields as worries about inflation play into the narrative that interest rates will remain elevated for longer than expected.

The two-year U.S. Treasury yield traded near the 5% level on Thursday while the 10-year yield stayed near its strongest level in weeks.in Germany rose more than forecast in May, ensuring that the spotlight is shining even more brightly on the eurozone's reading on Friday.Several Fed officials have warned that there needs to be more substantial progress on inflation before the U.S. central bank should be considering cuts.

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