Dollar extends gains
— Bund yield climbs above 0.5%
— Global bank shares rally
European stocks stalled Thursday after five sessions of gains, but global bank shares continued to chase bond yields higher as investors bet on stronger growth and tighter monetary policy.
The Stoxx Europe 600 was flat shortly after markets opened as gains in the banking sector were offset by declines in miners and retailers.
Shares of Swedish fashion company Hennes & Mauritz fell 4.6%, weighing down the broader index, after releasing third-quarter results that disappointed investors.
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Copper producer Antofagasta and U.K.-based miner Anglo American also came under pressure as a stronger dollar and expectations for higher interest rates weighed down metals prices.
European banks continued to climb, however echoing a rally in their U.S. and Asian peers as investors digested a GOP proposal to sharply reduce tax rates on businesses and many individuals that boosted government bond yields globally on Wednesday. Higher yields and the prospect of higher interest rates tends to boost lenders’ profitability.
Yields on 10-year Treasurys climbed Thursday to 2.352% from 2.309% after their biggest daily gain since March. Yields on 10-year German government bonds rose to 0.508% from 0.461% on Wednesday, around their highest since early August. Yields…