European Shares Fall as Federal Reserve's Rate Cut Delay Concerns Investors
European shares decline as Federal Reserve delays rate cut, impacting real estate sector and bond yields.
European SharesFederal ReserveInterest RatesReal EstateBond YieldsReal Estate PuneJun 13, 2024
Bond yields across the euro zone rose, with the yield on the German 10-year bund, the benchmark for the euro zone, last at 2.551%. Most sectors traded lower, with rate-sensitive real estate being the biggest drag, down 0.8%. Among single stocks, BT gained 2.5% after Mexican magnate Carlos Slim took a 3.16% stake in Britain's largest broadband and mobile operator. Shares of Wise plunged 19.2% to the bottom of STOXX 600 after the British money transfer company forecast a 15%-20% growth in its underlying income this year, a slowdown on the 31% seen in the year to end-March.
The U.S. Federal Reserve is the central banking system of the United States, responsible for setting interest rates and regulating the money supply. The Federal Reserve's decisions have a significant impact on global financial markets, including the European stock market.
The STOXX 600 is a stock market index representing the performance of the European stock market. It is composed of 600 stocks from 18 European countries.
BT is a British telecommunications company providing broadband and mobile services.
Wise is a British money transfer company providing cross-border payment services.
Frequently Asked Questions
What was the impact of the Federal Reserve's rate cut delay on European shares?
European shares edged lower, with the STOXX 600 down 0.2%.
What sector was most affected by the rate cut delay?
The rate-sensitive real estate sector was the biggest drag, down 0.8%.
What was the impact on bond yields in the euro zone?
Bond yields across the euro zone rose, with the yield on the German 10-year bund at 2.551%.
Which company saw a significant increase in its stock price?
BT gained 2.5% after Mexican magnate Carlos Slim took a 3.16% stake in the company.
Which company saw a significant decline in its stock price?
Shares of Wise plunged 19.2% after the company forecast a 15%-20% growth in its underlying income this year.
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