European and US stock markets moved lower Wednesday as investors focused on company earnings, bond yields and the outlook for the US and Chinese economies.
The dollar rose against major rival currencies and oil prices retreated.
“Rising Treasury yields continue to be a major topic of conversation mainly because the market isn’t entirely clear about why they are going up like they are,” said market analyst Patrick O’Hare at Briefing.com.
The yield on 10-year US government bonds has risen to 4.24 percent from 3.73 percent one month ago.
“A more market-friendly explanation suggests they are a byproduct of an improved growth outlook that bodes well for earnings,” said O’Hare.
“A less market-friendly explanation is that rising Treasury yields reflect burgeoning concerns about the budget deficit and inflation heating up again,” he added.
With the US economy in rude health, bets on another bumper cut to interest rates at the Federal …