European stocks close lower as yields climb. UK FTSE leads the declines

As London/European traders head home, the major European stock indices are closing lower. The UK FTSE 100 led the declines with a fall of 1.14%, while Italy’s FTSE MIB finished little changed. Germany, France and Spain ended between those extremes, giving sellers the advantage across the major markets.The closing levels showed:German DAX: 25,864.63, down 116.47 points or 0.45%.France CAC: 8,020.32, down 27.38 points or 0.34%.UK FTSE 100: 10,638.43, down 122.91 points or 1.14%.Spain IBEX: 18,807.20, down 150.60 points or 0.79%.Italy FTSE MIB: 49,941.82, down 6.13 points or 0.01%.European yields move higherEuropean benchmark 10-year yields moved higher across the board. France posted the largest increase at 5.7 basis points at 4.956% as it consolidates off the highs for the year at 5.142%, with UK and Italian yields each rising 5.1 basis points. Spain’s increase was more modest at 1.9 basis points.The higher yields put another hurdle in front of equity buyers. For France, the combination of a declining stock market and the largest yield increase among these markets leaves both stocks and bonds under pressure.The benchmark 10-year yields showed:Germany: 3.335%, up 4.0 basis points.France: 4.956%, up 5.7 basis points.UK: 5.248%, up 5.1 basis points.Spain: 3.934%, up 1.9 basis points.Italy: 4.467%, up 5.1 basis points.U.S. stocks: Nasdaq buyers get their turnIn the U.S., the stock market picture is more mixed. The Nasdaq indices are leading a rebound, while the Dow remains lower.The Nasdaq Composite and Nasdaq 100 came close to their respective 200-day moving averages yesterday. Today, buyers are responding. That keeps those key support levels in play as risk-defining barometers. Holding support gave buyers their opportunity. Sustaining the recovery and getting through overhead resistance are the next steps.At the time of the snapshot:Dow: 51,753.16, down 236.02 points or 0.45%.S&P 500: 7,578.60, up 37.20 points or 0.49%.Nasdaq Composite: 25,417.11, up 252.80 points or 1.00%.Russell 2000: 2,825.99, up 20.11 points or 0.72%.Nasdaq 100: 28,248.41, up 258.59 points or 0.92%.U.S. data beat expectationsThe U.S. economic releases were stronger than expected. JOLTS job openings came in at 7.52 million versus 7.15 million forecast and 7.19 million previously. The report points to more available positions than anticipated, although openings alone do not tell us how quickly employers are filling those jobs.Factory orders rose 1.8%, above the 1.2% estimate and the previous 0.3% increase. Taken together, the releases offer support for the growth outlook. For interest rates, however, stronger data also give traders less reason to anticipate an easier Fed policy stance.Treasury yields rise, led by longer maturitiesU.S. Treasury yields are also moving higher, with the increases larger beyond the short end of the curve.The 2-year yield is up 3.8 basis points at 4.621%. The 5-year is up 5.7 basis points at 4.750%, while the 10-year is up 6.4 basis points at 4.958%. The 30-year yield is higher by 6.1 basis points at 5.330%.The Nasdaq rebound is holding up despite that move in yields. Buyers have the upside momentum today, but higher borrowing costs remain a headwind.Swiss inflation surprises to the upsideElsewhere, Swiss CPI rose 0.2% month over month versus expectations for no change and a flat reading previously. The upside surprise gives traders a firmer inflation reading to factor into the Swiss rate outlook.France’s government budget balance showed a deficit of €159.2 billion versus €159.6 billion previously. In the UK, the 10-year gilt auction recorded a yield of 5.27% versus 5.42% at the previous auction, while bid-to-cover slipped to 3.4 from 3.6. This article was written by Greg Michalowski at investinglive.com.