Weak Sentiment Expected In European Markets On Thursday

Sentiment in European stock markets is expected to remain weak on Thursday amidst a hardening in global bond yields. Ten-year bond yields have increased more than a quarter percent in Germany, France, U.K., as well as Spain. The easing in crude oil prices, the momentum in tech stocks as well as toned down expectations of another Fed rate hike in October is expected to limit losses.

Despite softer-than-expected PCE inflation readings, Wall Street had closed on a mixed note on Wednesday amidst elevated treasury yields. The Dow Jones Industrial Average dropped 0.86 percent to finish trading at 50,906.05. The S&P 500 lost 0.25 percent to finish trading at 7,651.54. The tech-heavy Nasdaq Composite however rallied 0.24 percent to close trading at 26,861.06.