Europe open: Stoxx jumps again as equities shrug off bond yield rises

(Sharecast News) - European equities continued their run of recent gains at the open on Wednesday, shrugging off rising bond yields and the continued military stalemate in the Middle East between Iran and the US.

The pan-regional Stoxx 600 index was up 0.73% to 642 in early deals with all major bourses higher. Britain's FTSE 100 rose 0.72% after official data showed Britain's economy grew faster than previously thought in the second quarter.

Brent crude was just above $102 a barrel, a fall of 0.35%, having risen earlier in the session after US President Donald Trump denied reports that he was prepared to ease sanctions on Tehran.

"Crude oil fell more than 5% yesterday, pulling the US two-year (bond) yield lower, but longer-term yields kept rising. The 30-year yield spiked past 5.60%, the highest since 2002, and the two-10-year spread widened to 35bps. The US dollar extended gains, while equities remained under pressure," said Swissquote analyst Ipek Ozkardeskaya.

"In Europe, economic data from euro area countries looked mixed yesterday. Industrial sales in Italy rose more than expected in July, but business and consumer surveys from the broader euro area hinted at weak - and weakening - confidence in September, as inflation expectations rose further on rising energy prices."

In equity news, shares in Norway's Kongsberg Gruppen jumped as the company on Tuesday signed a contract worth $1.04bn with Belgium for its National Advanced Surface-to-Air Missile Systems air defence systems.

Reporting by Frank Prenesti for Sharecast.com