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European Bourses Midday Lower, Hit By Global Tech Slump

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Last updated: 02/22/2021 06:36:22

06:36 AM EST, 02/22/2021 (MT Newswires) -- European bourses were losing ground mid-session Monday, as traders weighed a Wall Street futures market flashing red and a rout in tech issues in Asia, where the Hang Seng TECH Index retreated 5.5%. Market denizens mulled rising global interest rates, as well.

In better news, Germany's widely watched Ifo Business Climate index rose in February to 92.4 from 90.1 in January, a surprise increase. The Ifo business expectations index for the next six months rose to 94.2 from 91.1, evidently as operators anticipate a quelling of the tenacious COVID-19 pandemic.

Reflecting softness in tech issues, the broad-gauge Stoxx Europe 600 Index was down 0.7% mid-session, also pulled down by consumer stocks.

In the sector metrics, the Stoxx Europe 600 Technology Index fell 1.7% near midday, while the Stoxx 600 Bank Index was off

0.5%. The Stoxx Europe Oil & Gas Index was down 0.3%. The Stoxx Europe Food & Beverage Index was down 0.9%.

The European REIT Index, the REITE, was off 0.6%.

Among national indices, the German Dax was off 0.6%, FTSE 100 in London was also off 0.6%, and the CAC 40 in Paris was off 0.5%. Spain's IBEX 35 was down 0.6%.

Front-month Brent crude oil futures rose 0.6% to $63.29 a barrel. Saudi Arabia "will strongly insist" that the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) maintain oil-output ceilings at next OPEC confab, Sputnik reported on Monday.

The yield on German 10-year sovereign bonds rose to minus 0.31%, less negative than on Friday, as global yields rise.

The Euro Stoxx 50 volatility index fell 9.1% to 20.48, indicating slightly above average volatility for European stock markets in the next 30 days. The index had dipped below 20 in mid-late January, a positive cue, but has since waffled higher. A reading above the 20-mark on the index indicates above-average volatility ahead, while below 20 suggests expectations for calmer markets.

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