European stocks gain as US yield surge pauses

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European stocks gain as US yield surge pauses

© Reuters. Passersby walk past an electric monitor displaying the Japanese yen exchange rate against the U.S. dollar outside a brokerage in Tokyo, Japan October 4, 2023. REUTERS/Issei Kato/File photo

U.S. yields have been rising in recent weeks as investors reprice the chance of the U.S. Federal Reserve keeping rates elevated for longer if inflation remains above target and the economy continues to show resilience. The 10-year U.S. yields hit a 16-year high of 4.884% overnight. "The question everyone’s asking is: can yields continue to rise further and at what point are yields going to cause some serious damage on the economy?” said Baylee Wakefield, a portfolio manager at

"There is a risk that the breather in bonds and the dollar correction are too reliant on expectations of a jobs data miss," ING said in a client note.The Japanese yen also gained relief from Wednesday's market shift, changing hands at 149.

 

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