- European stocks open higher, with tech and auto sectors leading.
- Indian markets continue upward momentum, driven by Adani Group stocks.
- Bond yields and inflation remain key concerns across global markets.
European stock markets showed a positive reversal after recent losses, with most sectors gaining. Bond yields remain a concern, especially for major economies like the UK and France, where rising yields increase government debt servicing costs.
In India, stocks continued their upward trajectory, with Adani Group stocks leading the charge. Adani Enterprises surged by 7.61%, while Adani Ports advanced by 5.56%. Other notable gainers included NTPC and Hindalco.
European Stocks Rebound but Inflation and Borrowing Costs Loom Large
The European stock market saw a broad-based recovery after a period of negative sentiment. Gains were fueled by positive performance in the automobile, chemicals, and technology sectors. However, concerns over inflation and rising borrowing costs for European governments continue to cast a shadow over the optimism. As government bond yields hit multi-month highs last week, investors remain cautious.
In the UK, the FTSE 100 index edged lower due to a 2% decline in BP’s shares. Meanwhile, Asian market positivity, including a surge in Chinese stocks following reports of potential tariff increases, helped boost sentiment in European markets. Investors continue to monitor developments related to US trade policy under President-elect Donald Trump.
Indian Equity Markets See Positive Momentum Led by Adani Group Stocks
Indian equity markets maintained an upward trend, with the Sensex and Nifty both posting gains. The benchmark Sensex rose 0.32%, supported by strong performance from Adani Group companies. Adani Enterprises saw a substantial 7.61% increase, while Adani Ports rose by 5.56%. Other sectors, including energy and finance, also contributed to the gains, with NTPC and Bajaj Finance showing significant advances.
However, the IT sector faced a major sell-off, as HCL Technologies experienced an 8.22% drop despite reporting strong quarterly numbers. The broader market continues to watch developments in inflation data, as softer inflation readings have provided a positive backdrop for the Indian market’s performance. Meanwhile, other consumer goods and healthcare stocks saw declines, including Hindustan Unilever and Apollo Hospitals.
French Government’s Financial Outlook Under Scrutiny Amid Eurozone Bond Yields
The political landscape in France adds to the economic complexity, as new Prime Minister François Bayrou is expected to push for support from opposition parties, particularly the Socialists, to secure the 2025 budget. The French government is navigating rising borrowing costs, which could further complicate its fiscal plans. With European bond yields at multi-month highs, debt servicing costs for governments are becoming an increasingly significant concern across the eurozone.
The broader market focus will remain on government debt levels, with investors awaiting further developments on fiscal policy in the Eurozone. In addition, the announcement of US tariff plans, alongside ongoing inflationary pressures in both Europe and the US, are contributing to an atmosphere of caution across the global equity markets.
In both Europe and India, markets are showing resilience despite ongoing inflation concerns and rising bond yields. The performance of major sectors like tech and auto in Europe and Adani Group stocks in India highlights the mixed sentiment as global financial risks remain at the forefront of investor strategies.
“European Markets Surge Amid Global Sentiment Shift, But Bond Yields Still a Concern”
