European Stocks Erase Gains as Selloff in US Bond Market Resumes
(Bloomberg) — European stocks were little changed on Tuesday as US Treasuries drove a risk-off end to the day, while Julius Baer Group Ltd. rose after Swiss regulatory action against the bank ended.
The Stoxx Europe 600 index edged lower at the close after earlier gaining as much as 0.7%. The 30-year Treasury yield hit its highest level since 2002 after US consumer confidence weakened.
Chip stocks in Europe rallied, with ASML Holding NV rising 4.2%. Oil and gas companies were among the biggest laggards, pulling back from record highs as Brent crude fell below $105 a barrel after flows resumed through a key pipeline in Saudi Arabia.
In other individual stock moves, Julius Baer rose 7.2%. The bank said it applied for permission to resume share buybacks after Swiss regulator Finma concluded its enforcement procedure, marking the end of a painful restructuring. Chocoladefabriken Lindt & Spruengli AG dropped 8.7% after the Swiss-based chocolatier cut its sales-growth guidance for a second time this year.
European stocks are entering the latest earnings season sitting just below all time highs, but in need of a strong catalyst to overcome persistent geopolitical risks. Brent crude has traded above $100 a barrel for three weeks running and an end to war in the Middle East seems distant, with Iranian officials pessimistic about the chances of a deal before US midterm elections.
“The market is scrambling for some positive news,” said Michael Field, chief equity market strategist for EMEA at Morningstar. “There’s so many negatives building in the background so I think unless we get a series of positive catalysts, we’re not gonna get back on track with that run.”
In other moves, Fresenius SE shares fell 4.9% after one of the company’s units got an FDA warning letter citing violations at a sterile injectable drug manufacturing facility. BMW AG fell 1.2% as it held a capital markets day.
Here’s what strategists are saying about markets:
Goldman Sachs strategists remain neutral over three months but modestly pro-risk over 12 months, arguing that easing rates pressure would open up “the clearest path to equity upside.” The decline in equity valuations reflects pressure from the surge in rates over the past few months, while poor market breadth is a contrarian indicator that generally signals oversold conditions, according to HSBC strategists. ©2026 Bloomberg L.P.
