Global Stocks Retreat Amid Rising Bond Yields

European shares declined as government bond yields surged to multi-month highs, influenced by concerns over potential tariffs from U.S. President-elect Donald Trump. The pan-European STOXX 600 index fell by 0.5%, while German bond yields reached their highest level in six months, heightening fears of inflation and trade tensions. Similarly, U.S. Treasury yields hit eight-month highs, driven by strong job openings, creating a scenario where positive economic data negatively impacts stock markets. Analysts are worried that increasing long-duration treasury issuance could compromise market liquidity. This environment has left currencies like the yen and euro near multi-month lows, with Asian markets particularly vulnerable. Upcoming economic data from various countries may either provide clarity or exacerbate current market instability.