Main PageOctober 8, 2026

investingLive European session wrap: Yields continue to soar as oil surges and stocks tumble

Markets:

  • 10-year Treasury yields up 6 bps to 5.345%
  • WTI crude up 4.1% to $92.60
  • USD leads, AUD lags on the day
  • Gold up 0.2% to $4,121
  • European stocks lower; S&P 500 futures down 0.6%
  • Bitcoin down 1% to $82,451

Once again, investors are dealing with the same old story in markets in European morning trade today.

The bond market continues to come under pressure and that is leading to a more negative risk backdrop while underpinning the dollar. At the same time, higher oil prices are only adding fuel to the fire in reigniting the “higher for longer” narrative amid worries about more persistent inflation risks.

The standout remains long-end Treasury yields, with 10-year yields rising further to above 5.34% after the brief fall in late US trading yesterday. Meanwhile, 30-year yields also continue to stay near multi-decade highs above 5.70%. This continues the trend from earlier this week, with yields continuing to stay underpinned amid a multitude of reasons – from mounting worries over the US fiscal outlook to inflation uncertainty, leading investors to demand a higher premium for owning long-term bonds.

In Europe, the pressure is also mounting with 10-year French bond yields surging up to 4.94% with 10-year German bond yields also nudging higher to 3.52%. France’s fiscal risks are continuing to threaten a broader spillover across the region and that is keeping the bond market very much on edge.

Besides that, oil prices are also jumping higher today and that is keeping broader markets unsettled too. WTI crude is up over 4% to $92.60 and that is adding to inflation concerns in the bigger picture.

As such, the overall risk mood is once again hampered by the latest moves today. The DAX is down by over 1% with the CAC 40 also posting roughly similar losses. Meanwhile, US futures are also dragged lower with S&P 500 futures down by 0.6% and Nasdaq futures lower by 0.8% as higher yields continue to squeeze equity valuations alongside tighter financial conditions.

In the major currencies space, the dollar is once again benefiting from the rise in Treasury yields. EUR/USD is down 0.2% to 1.1175 after a brief rebound this week to above 1.1200, while USD/JPY is up 0.2% to 158.27 on the day.

Looking to the session ahead, the US weekly initial jobless claims will be in focus and that will be a watchful test on whether the softer jobs report last week are turning into layoffs in Q4.

This article was written by Justin Low at investinglive.com.