By Steve Goldstein
The benchmark German 10-year bund was on the precipice of having a positive yield for the first time in three years.
The yield /zigman2/quotes/211347112/realtime BX:TMBMKDE-10Y 0.00% rose as high as -0.03%. Yields move in the opposite direction to prices.
Bonds in the eurozone’s largest economy have tracked the direction, if not the magnitude, of the selloff in the U.S. Unlike the Federal Reserve, the European Central Bank has no plans to lift interest rates this year.
European stocks slumped Tuesday, with tech stocks sliding on the rise in bond yields and travel and leisure stocks also feeling the pressure.
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +1.42% fell 1.1% to 479.13. Of the major regional indexes, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.62% skidded 1%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +1.64% slumped 1% and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.27% declined 0.5%.
THG /zigman2/quotes/221121045/delayed UK:THG -4.40% shares slumped 7%, as the e-commerce company said revenue growth this year would range from 22% to 25%, compared to the 38% advance for fiscal 2021, and that high commodity prices would weigh on margins in the first half of the year. Analysts at Davy Research say they will be cutting their 2022 operating profit forecast by about 9% after the update.
THG shares have stumbled 77% over the last 52 weeks, which its CEO, Matthew Moulding, has blamed on a coordinated hedge-fund attack.