Live Markets: European shares facing a "toxic backdrop"

Bayerische Motoren Werke Aktiengesellschaft

09/10/2026 11:11

Adds new blog
STOXX 600 up 1%
Oil prices dip
Telecoms sector tumbles on SpaceX spectrum deal
Wall Street futures higher
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
     
EUROPEAN SHARES FACING A "TOXIC BACKDROP"
As US stocks hit record highs this week, European shares dropped to their lowest in almost four months as various headwinds have started to bite. 
Higher oil and gas prices and fiscal and political worries in France have pushed bond yields to their highest in decades, which Barclays thinks does not bode well. 
     "Together, higher rates and rising energy prices create a toxic backdrop for Europe, given the region's greater sensitivity to both," Barclays equity strategists say in a note. 
As bond yields climb, investors don't just have to look at stocks for returns, threatening the so-called TINA (There Is No Alternative) trade. 
"Big picture, the backdrop for equities is no longer as straightforward as it was earlier in the year," Barclays says. 
"The cushion from TINA narrative is increasingly challenged, which means earnings will need to do more of the heavy lifting."
Earnings season unofficially kicks off next week as the big US banks start to report, while in Europe ASML, BMW and LVMH are on the docket. 
(Samuel Indyk)
*****
     
EARLIER ON LIVE MARKETS:
BOFA BEARS TURN BULLISH ON FRANCE  CLICK HERE
EUROPEAN STOCKS RISE FROM MULTI-MONTH LOWS, TELECOMS TRIP UP CLICK HERE
EUROPE BEFORE THE BELL: FUTURES HIGHER AS OIL RETREATS CLICK HERE
FEEDING THE AI BEAST CLICK HERE