Stocks fell on Tuesday, dragged down by interest rate-sensitive technology and industrial stocks, after the Bank of Japan rattled global markets with a sudden shift in monetary policy that would allow long-term interest rates to be raised more quickly.
stock movements
The Stoxx 600 index was up 0.4 percent by 08:16 GMT.
The index received great support from the stocks of consumer accessories sector companies, which represent goods and services that consumers consider unnecessary, but they buy them when their income is sufficient for that, after Nike’s quarterly sales boosted the performance of sportswear companies such as Adidas and Puma.
The index closed lower in the previous session, but compensated for some of its early losses as the markets stabilized, after an initial shock it suffered as a result of the Bank of Japan’s sudden adjustment to controlling bond yields, as the “STOXX 600” index closed down by 0.4 percent, Tuesday.
Germany’s DAX fell 0.4 percent as German 10-year bond yields rose to their highest in more than a month.
The Bank of Japan decided to allow 10-year bond yields to move 50 basis points up or down from the zero percent target, compared to a range of 25 basis points previously, in a move aimed at mitigating some of the costs of long-term monetary stimulus.
In Wednesday’s trading, the health care sector rose 0.5 percent, supported by a 4.4 percent jump in Dutch health technology company Philips, which announced that independent tests for its respiratory devices included in a broad global recall showed positive results.
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