European markets
LONDON — European markets retreated on Friday, tracking cautious global sentiment as traders assess the future for monetary policy and fresh concerns about China’s real estate sector.
The pan-European Stoxx 600 index closed 0.6% lower, paring some of its earlier losses. Mining stocks dipped 1.5% and retail stocks fell 1.2% as almost all sectors and major bourses slid into negative territory.
The European blue chip index closed Thursday’s session down 0.9% after the U.S. Federal Reserve’s July meeting minutes showed further interest rate hikes were not off the table.
European stocks on Friday look set to follow counterparts in Asia-Pacific, where markets fell across the board as investors assessed Japan’s July inflation print and embattled Chinese real estate giant Evergrande ’s U.S. bankruptcy filing.
The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructuring from creditors.
Stateside, U.S. stocks traded lower after the major averages dropped for a third straight day on Thursday, with the Dow closing below the 50-day moving average — typically a bearish signal for investors — for the first time since June 1.
Wednesday’s Fed meeting minutes prompted the U.S. 10-year Treasury yield on Thursday to rise to its highest level since October 2022.
