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European shares ease as dashed rate-cut hopes push yields higher

February 5, 2024

European shares closed lower on Monday, as government bond yields across the continent jumped on lower expectations about imminent interest rate cuts by major central banks, eclipsing gains brought by some upbeat corporate reports.

The pan-European STOXX 600 index ended 0.1% lower after closing out the previous week flat.

The yield on the German government bond, considered the region’s benchmark, continued its rise and was last at 2.318% as the latest data following a robust U.S. jobs data poured cold water on hopes of an early rate cut in the world’s largest economy, setting the tone for other central banks.