European stocks rose Wednesday as bond yields retreated from five-year highs and Antofagasta PLC said 2007 will be a “good” year, underpinning gains by mining companies.
“I don’t think the bull market is at an inflection point,” said Matthias Jasper, head of equities at WGZ Bank AG in Dusseldorf, Germany. “There are bumps in the road but markets will rise further. Rising bond yields were a new aspect that took center stage.”
The Dow Jones Stoxx 600 index rose 0.4 percent. The Stoxx 50 also added 0.4 percent, as did the Euro Stoxx 50, a measure for the nations sharing the euro. National benchmarks increased in 13 of the 18 Western European markets.
DECLINE IN ASIA: Asian stocks fell to a two-week low on concern that interest rates will rise and sap growth in the world’s largest economies.
“A short-term correction looks inevitable for global markets,” said Chang In Whan, president of KTB Asset Management Co. in Seoul. Global inflationary pressure will “squeeze liquidity,” he said.
The Morgan Stanley Capital International Asia-Pacific index slid 0.8 percent. Japan’s Nikkei 225 index dropped 0.2 percent.
