UKX FTSE 100 Index

By Carla Mozee, MarketWatch

Credit Suisse shares rally after earnings

Investors shoved European stocks sharply lower Wednesday in the wake of a selloff on Wall Street where equities were spoked by rising bond yields and downbeat outlooks from industrial heavyweights.

How markets are moving

Germany's DAX 30 index was the worst performing among national indexes. It fell 1.5% to 12,347.75, with only shares of Linde AG (LINU.XE) showing a gain. France's CAC 40 index declined 0.6% to 5,410.40.

Spain's IBEX 35 lost 0.7% to 9,812.50 and the U.K.'s FTSE 100 shed 0.7% to 7,375.53, on course to break a six-session winning streak (http://www.marketwatch.com/story/ftse-100-drops-after-rising-bond-yields-spur-selloff-on-wall-street-2018-04-25).

The broader Stoxx Europe 600 index sank 1% to 379.45, pulling away from their highest levels since early February. The benchmark on Tuesday gave up gains and (http://www.marketwatch.com/story/european-stocks-hold-at-2-month-highs-as-energy-names-rally-2018-04-24)ended fractionally lower.

The euro was buying $1.2211, up from $1.2233 late Tuesday in New York.

The yield on Germany's 10-year bund rose 1 basis point to 0.641%, according to Tradeweb data, as prices fell.

Check out:Why the premium for German bonds over Treasurys is the widest in 30 years (http://www.marketwatch.com/story/why-the-premium-for-owning-german-bonds-over-treasurys-is-at-the-widest-in-30-years-2018-04-23)

What's driving the market

European , U.K. and Asian stock markets took their cues from a slide in U.S. stocks on Tuesday (http://www.marketwatch.com/story/dow-shapes-up-to-break-losing-streak-but-earnings-could-kill-the-buzz-2018-04-24), which was led by declines in shares of industrial, basic materials and technology companies. The Dow Jones Industrial Average sank 424 points, or 1.7%, and the S&P 500 index gave up 1.3%.

U.S. stocks were driven sharply lower after the U.S. 10-year Treasury yield climbed and touched the psychologically important 3% level for the first time in four years (http://www.marketwatch.com/story/yields-pull-back-as-us-10-year-government-bond-march-to-3-stalls-2018-04-24). Meanwhile, shares of industrial heavyweights dropped, with construction equipment maker Caterpillar Inc. (CAT) saying the first quarter was likely the "high watermark" for the year. Also, 3M Co. shares (MMM) plunged after the company trimmed its full-year outlook (http://www.marketwatch.com/story/3ms-stock-tumbles-into-a-bear-market-after-most-disappointing-results-in-over-a-decade-2018-04-24).

U.S. bond yields have been rising on expectations that inflationary pressures could prompt the Federal Reserve to ramp up the pace of rate hikes, which would increase borrowing costs for companies and consumers. European bond yields have also been creeping higher. Higher yields can weigh on stocks as bonds start to offer better returns than equities and raise borrowing costs.

Read:What it means for the market that the U.S. 10-year government bond yield hit 3% (http://www.marketwatch.com/story/heres-what-it-means-for-the-market-that-the-us-10-year-yields-3-2018-04-24)

Stocks in focus

Osram Licht AG shares (OSR.XE) tumbled 10% after the German lighting maker late Tuesday cut its full-year target on earnings before interest, taxes, depreciation and amortization.

Kering SA (KER.FR) bounced 6.1% higher as the luxury goods maker said first-quarter revenue jumped 27% (http://www.marketwatch.com/story/kering-revenue-soars-as-gucci-keeps-up-success-2018-04-25), led by its flagship Gucci brand and "exceptional momentum" at Balenciaga.

Credit Suisse Group AG shares (CSGN.EB) (CSGN.EB) rose 3.9% as the Swiss lender said first-quarter net profit grew roughly 16% (http://www.marketwatch.com/story/credit-suisse-profit-up-16-beating-forecasts-2018-04-25) to 694 million Swiss francs ($709.1 million), beating expectations of 653 million Swiss francs.

"With these first-quarter results, we got off to a good start in our third and final year of restructuring," said Chief Executive Tidjane Thiam said in a statement.

Metro Bank PLC shares (MTRO.LN) slid 10% as the U.K.-based lender said its first-quarter profit increased more than fivefold to GBP6.4 million ($8.9 million), but that its capital position has weakened (http://www.marketwatch.com/story/metro-bank-profit-soars-capital-ratio-falls-2018-04-25).

Shire PLC shares (SHPG) (SHPG) fell 1.4%, turning lower in Wednesday trade. The drug maker recommended shareholders accept (http://www.marketwatch.com/story/shire-seems-ready-to-accept-latest-takeda-offer-2018-04-24) an improved takeover bid from Takeda Pharmaceutical Co. (4502.TO)

(END) Dow Jones Newswires

April 25, 2018 05:56 ET (09:56 GMT)

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