Europe open: Shares down, oil surges on new US-Iran strikes, bond yields

(Sharecast News) - European shares opened lower on Wednesday as the US and Iran traded air strikes sending oil prices surging and rising global bond yields rattled investors.

The benchmark Stoxx 600 index was down 0.16% to 646 at 0724 GMT with all major bourses lower after Washington launched a series of airstrikes against targets in Iran overnight, with Tehran retaliating against American bases in the region. countries in weeks.

The Islamic Revolutionary Guard Corps said it had fired ballistic missiles at a US military base in Jordan and Iranian state media reported a large-scale drone attack on an American base in Bahrain. It added that the US attacks would further restrict traffic through the vital Strait of Hormuz.

Brent crude rose 0.85%, to $95.45 a barrel, while U.S. West Texas Intermediate was up 0.26%, to $90.48.

Global bonds extended their slide as investors reacted to surging energy prices and renewed inflation worries stemming from the escalating conflict.

The latest jump in yields pushed borrowing costs in major economies to multidecade highs, adding fresh pressure to ratesensitive sectors and weighing on equity sentiment as policymakers face tougher fiscal choices as funding costs rise and inflation risks remain elevated.

The yield on 10-year US Treasury notes rose to a near three-year high of 4.81%. Japan's 10-year yield remained above 3%, a three-decade high and Australia's 10-year rose to 5.198%, the highest level in more than 15 years.

In equity news, shares in Italian gambling group Lottomatica fell after it agreed to merge with Spain's Cirsa Enterprises in an all-share merger deal.

Reporting by Frank Prenesti for Sharecast.com