LONDON :Stocks fell on Friday as uncertainty about Chinese developer Evergrande sapped confidence but the major markets remained on course for a weekly gain, while European and U.S. bond yields extended their rise after talk of central bank tapering.
Analysts say investors remain bullish on the outlook for global growth and are confident that central banks' withdrawal of their stimulus schemes won't derail the rebound and that the Evergrande crisis can be contained.The regionwide STOXX 600 index slid 0.8per cent after a three-day run of gains, while Britain's FTSE 100 also weakened.
Evergrande's debt crisis continued to rattle confidence, with Hong Kong and Shanghai stocks closing lower after Reuters reported that some offshore bondholders of the company had not received interest payments by the Thursday deadline. The yield on benchmark 10-year Treasury bonds was last at 1.425per cent, near a three-month high after gaining 13 basis points overnight.
"Central bankers have been talking in unison about inflation being transitory but if even the Fed is softening its stance on this, then that could also be the case elsewhere," said Jan von Gerich, chief analyst, Nordea.