European markets head for mixed open as investors monitor rising U.S. Treasury yields

  • European stocks are expected to open in mixed territory Wednesday as investors monitor rising bond yields.
  • London's FTSE is expected to open 10 points higher at 6,756, Germany's DAX down 22 points at 14,040, France's CAC 2 points lower at 5,779 and Italy's FTSE MIB 54 points lower at 23,347, according to IG.

LONDON — European stocks are expected to open in mixed territory Wednesday as investors monitor rising bond yields.

London's FTSE is expected to open 10 points higher at 6,756, Germany's DAX down 22 points at 14,040, France's CAC 2 points lower at 5,779 and Italy's FTSE MIB 54 points lower at 23,347, according to IG.

Global investors are watching market moves in the U.S. as the benchmark 10-year Treasury yield jumped 9 basis points on Tuesday to top 1.3% — a level not seen since February 2020. The 30-year rate also hit its highest level in a year. The yield on the 10-year Treasury last stood at 1.3006%.

Some on Wall Street believe higher rates could prompt investors to rotate out of equities and into bonds, while also putting pressure on areas of the market, including tech, which have benefitted from the low-rate environment.

Stocks in Asia-Pacific were lower in Wednesday trade following the dip in the U.S. Markets in mainland China remain closed on Wednesday for the Lunar New Year holidays.

Investors will be keeping an eye on cryptocurrencies Wednesday after bitcoin briefly topped $50,000 for the first time on Tuesday, as its surge to new record highs continued.

Earnings come from Kering, British American Tobacco and Rio Tinto on Wednesday and data releases include new car registrations for January in a slew of European countries and U.K. inflation data for January. The euro zone also releases construction output data for December.

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– CNBC's Pippa Stevens contributed to this market report.

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