European Stocks Close Lower as 'Trump Rally' Takes a Breather

European stocks traded lower into the close Thursday as investors put the brakes on a two-day U.S. election rally amid a worrying rise in global bond yields. 

The region's Stoxx 600 index, the broadest measure of equity performance, fell 0.4% by the close of trading, but has still booked a gain of 1.95% since the start of the week amid a global stock market rally fuelled by the election of Donald Trump early Wednesday.

Britain's FTSE 100 index, having held gains through much of the morning session, shed more than 80 points, or 1.2%, into the close as weak consumer stocks offset gains for banking and mining stocks. Germany's DAX index closed 0.31% lower while France's benchmark, the CAC-40, ended the day down 0.44%

The equity market losses flank one of the worst days of the year for global bond markets, as U.S. Treasury yields rise past January highs on bets on higher interest rates and faster inflation in the wake of President Elect Donald Trump's $9.5 trillion stimulus and infrastructure plans. 

Benchmark 10-year German bund yields rose more than 12 basis points Thursday to trade at 0.32%, the highest since March, while similar maturity government bonds from Italy hit a 15-month high of 1.91%. 

In London, the session's biggest gainer was Antofagasta (ANFGY) whose shares rose 11.3%, to a one-year high of 720 pence each. The London-listed Chilean miner cautioned only two weeks ago that its copper production would be at the lower end of guidance this year, and that next year's would fall. However, global copper prices rose sharply in London, rising to a 16-month high, as traders bet on steep infrastructure spending gains from a Trump Presidency.

If you liked this article you might like

Banks, Commodities Lift European Benchmarks to Strong Gains

Chinese Data Boosts London While Europe's Benchmarks Slide

Commodities Sink European Stocks as Investor Sentiment Sours

European Stocks Slip as Banks, Economic Data Weigh

European Stocks Fall as Traders Turn Toward French Parliamentary Elections