European stocks advance as treasury yields retreat

The sentiment on the European stocks remained largely mixed, although most major indices extended gains as the bond market sell-off paused amid tumbling yields, which offered some support to the alternative risk assets, equities.

However, the German stocks traded subdued, weighed down by profit-taking in heavy-weighted banking sector stocks. While weaker-than expected German prelim GDP figures also dampened investors’ sentiment.  

While the London stocks emerged the best performers and drove the European markets advance, mainly driven by a weaker GBP and extended rebound in oil prices, which boosted the energy and resource stocks on the index.

Markets digest the latest Eurozone flash GDP data, upbeat UK CPI report and German ZEW surveys, awaiting the BOE inflation report hearings for further momentum.

Meanwhile, Germany's DAX 30 index trades modestly flat around 10,700 levels, while the UK's FTSE 100 index rises +0.88% to 6,812. Among the other indices, the French CAC 40 index advances +0.43% to 4,528, while the pan-European Euro Stoxx 50 index trades almost unchanged near 3,050 mark.

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