European equities showed a mixed performance on Thursday, with investors exercising caution despite some stabilization in recent bond market volatility.
As of 08:21 GMT, the Stoxx Europe 600 edged up 0.2%, Germany’s Dax gained 0.3%, and France’s CAC 40 fell 0.4%. The FTSE 100 in London remained largely flat.
Market fluctuations this week have been driven by a global sell-off in long-dated government debt, amid concerns over debt-fueled fiscal pressures in several countries. Bond markets, however, saw some relief following remarks from Federal Reserve officials, including Governor Christopher Waller, which reinforced expectations that the U.S. central bank may resume rate cuts at its upcoming September meeting.
In Japan, a long-term government debt auction drew only moderate demand, but it was sufficient to avoid further disruption in bond markets. The 30-year Japanese government bond yield had earlier surged to an all-time high, reflecting the inverse relationship between yields and prices. Additional debt sales are scheduled later in the day in France and the U.K., two nations that have been focal points of European bond market volatility.
Investors are also looking ahead to Friday’s U.S. nonfarm payrolls report, which could offer fresh insight into labor market conditions and influence expectations for future Fed rate adjustments.
Sector Moves and Company Highlights
Travel and leisure stocks were among the weakest performers, pressured by Jet2 (LSE:JET2). The U.K. budget airline now anticipates its full-year operating profit to land near the lower end of guidance, sending its shares down more than 13%.
Porsche (BIT:1PORS) was also dropped from the domestic mid-cap index, reflecting challenges from sluggish demand in China and the looming possibility of U.S. import tariffs. Its shares fell 0.8% in mid-morning trading.
Gold Retreats from Record Levels
Gold prices pulled back in European trade as investors took profits after the metal hit record highs. The dollar stabilized ahead of U.S. labor data and potential Fed rate cuts.
This week, gold reached a series of all-time highs, driven by expectations that the Federal Reserve will reduce rates at its September 16–17 meeting and supported by safe-haven demand amid high government debt in developed economies.
Spot gold dropped 0.5% to $3,541.78 per ounce, while December futures fell 1.0% to $3,600.10 per ounce by 04:39 ET.
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