Major European indices trade lower across the board.
The spread between Italy’s 10-yr yield and Germany’s 10-yr yield widened to its highest level in over two years, reflecting growing worries about the region’s economy.
Reuters reported that the Bank of England will raise its bank rate by 25 bps on Thursday and maintain a slow hiking pace in the coming months while FT speculated that the BoE will hike by 50 bps this week.
French President Macron’s party appears to have lost some parliamentary seats in yesterday’s election and it remains unclear if the party will maintain its absolute majority.
Fitch affirmed the U.K.’s AA- rating with a Stable outlook.
STOXX Europe 600: -1.8%
Germany’s DAX: -2.1%
U.K.’s FTSE 100: -1.3%
France’s CAC 40: -2.2%
Italy’s FTSE MIB: -2.2%
Spain’s IBEX 35: UNCH