European Stocks Steady as Bond Market Concerns Ease, Airlines Under Pressure
European shares held steady on Thursday as investors remained cautious amid ongoing bond market concerns, while a weak earnings outlook from Jet2 weighed heavily on travel and leisure stocks.
The pan-European STOXX 600 index was flat at 546.93 points by 07:22 GMT, after a volatile start to the session.
The travel and leisure sector led losses, falling 1.2%, with Germany’s TUI and EasyJet dropping more than 4% each. Jet2 shares plunged by around 25% after the British budget airline and travel group forecast its full-year operating profit would land at the lower end of expectations.
Luxury carmaker Porsche slipped nearly 1% after confirmation it will be removed from Germany’s blue-chip DAX index and relegated to the mid-cap MDAX. The stock has faced sustained pressure from U.S. import tariffs and weakening demand in China.
Overall caution persisted in European markets as fears over debt-fueled fiscal spending by developed economies resurfaced this week, triggering volatility in equities and long-term bonds. Investors are also awaiting debt auctions later today in France and the United Kingdom, both of which have been at the center of Europe’s recent bond market selloff.
