By Barbara Kollmeyer
European stocks slipped on Friday, as Wall Street equities pointed lower and U.S. Treasury yields resumed their climb.
The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.89% fell 0.4% to 422.57 after a four-session winning streak. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.34% dropped 0.5%, while the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.45% and FTSE 100 indexes /zigman2/quotes/210598409/delayed UK:UKX +0.76% were flat. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.8122% and pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0072% fell against the dollar /zigman2/quotes/210598269/delayed DXY -0.79% , which strengthened across the board.
A familiar scenario was emerging for investors, as the yield on the U.S. 10-year Treasury /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00% rose back above 1.6%, a day after dipping below 1.5% for the first time in a week . U.S. stocks were set for a lower open , led by technology stocks /zigman2/quotes/210598365/realtime COMP +0.88% .
Some cited a crackdown on technology companies in China as adding to pressure on technology stocks. China’s market regulator said Friday it had imposed fines on twelve companies, including WeChat owner Tencent /zigman2/quotes/204605823/delayed HK:700 -1.72% , search engine Baidu /zigman2/quotes/209050136/composite BIDU -0.41% , ride-hailing giant Didi Chuxing and Japan’s SoftBank /zigman2/quotes/207303954/delayed JP:9984 -0.40% .
European and U.S. stocks climbed Thursday after President Joe Biden signed a $1.9 trillion stimulus bill into law, and the European Central Bank said it would speed up its bond buying plan as it continues to battle the effects of the pandemic on economies.
While the ECB’s stance spurred gains for the region’s bonds on Thursday, those assets were under some pressure again Friday. The 10-year German government bond yield /zigman2/quotes/211347112/realtime BX:TMBMKDE-10Y 0.00% rose 2 basis points to negative 0.308%. The yield on the 10-year U.K. gilt /zigman2/quotes/211347177/realtime BX:TMBMKGB-10Y 0.00% rose 5 basis points to 0.794%.
Data showed the U.K. economy shrank 2.9% in January, with weakness led by the services sector amid lockdowns and as new Brexit trading arrangements hit exports, the Office for National Statistics said Friday .
Among stocks on the move, tech weakness was showing up in Europe, with shares of ASML Holding /zigman2/quotes/210293876/composite ASML +2.21% /zigman2/quotes/206208657/delayed NL:ASML +2.66% and STMicroelectronics /zigman2/quotes/207734906/composite STM +2.11% /zigman2/quotes/203551318/delayed IT:STM +2.79% each down at least 1%.
Burberry /zigman2/quotes/205386705/delayed UK:BRBY +0.37% shares jumped 7% after the luxury-goods group forecast fiscal 2021 revenue and adjusted operating profit to come in ahead of expectations.