Market Analysis

Global bond yields rose, dampening sentiment across European stock markets on Thursday ahead of key inflation data due later in the week. As of 03:10 ET (07:10 GMT), Germany's DAX index was down 0.3%, the UK's FTSE 100 dropped 0.2%, and France's CAC 40 edged up 0.1%.

Investor concerns grew over elevated U.S. Treasury yields, suggesting prolonged high interest rates amid fears of persistent inflation. In Germany, May's consumer price index exceeded expectations, intensifying focus on Friday's eurozone inflation data, projected to rise to 2.5% year-on-year from April's 2.4%.

Market attention also turned to upcoming U.S. economic indicators, including gross domestic product data and the PCE price index, crucial for Federal Reserve policy decisions. Despite a larger-than-expected decline in U.S. oil inventories reported by the American Petroleum Institute, crude prices fell due to broader economic uncertainties.

In corporate news, BHP Group opted not to pursue a $49 billion takeover of Anglo American due to unresolved concerns over South African regulatory risks, impacting its stock price, which fell 1.7%.

Overall, market sentiment remained cautious amid ongoing economic data releases and central bank policy expectations.

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