European equities extended their decline on Thursday, closing sharply lower for a second consecutive session as sovereign bond yields resumed their surge. The Euro STOXX 50 fell 0.8% to 6,132, while the STOXX Europe 600 lost 0.7% to finish at 625.7.
Benchmark government bond yields across the eurozone’s largest economies built on yesterday’s sharp move higher, with the rise particularly pronounced in more heavily indebted member states. This renewed pressure reinforced worries about potential fragmentation in eurozone sovereign bond markets.
Contagion concerns continued to drag on the banking sector, with shares in UniCredit, Intesa Sanpaolo, ING, and Santander declining between 2.5% and 3.1%. Adding to the cautious tone, minutes from the latest ECB meeting confirmed that the Governing Council still perceives upside risks to inflation in the bloc’s economy.
In corporate news, Argenx slumped more than 15% after the company halted its late-stage clinical trial of Vyvgart, a treatment candidate for adults with Sjögren’s disease.
