European stock markets saw a recovery on September 16 following two days of decline. The pan-European STOXX 600 index increased by 0.4%, reaching 636.81 points during early trading in London. Germany’s DAX index also recorded a 0.4% gain.
The banking sector led the market rebound. Barclays shares rose by 1.4%, while Standard Chartered saw an increase of 1.7%. This growth followed a period of pressure on rate-sensitive financial institutions caused by rising yields.
Oil prices for Brent and WTI crude fell by approximately 0.6%. Previously, Brent prices had exceeded $108 due to supply concerns related to the conflict between the US and Iran in the Middle East.
The yield on 10-year US Treasury bonds dropped below the 5% threshold after reaching its highest level since 2007 in the previous session. Market participants anticipate a 25-basis-point interest rate hike from the Federal Reserve, with a 93% probability.
