LONDON, May 14 (Reuters) - European stocks were seen falling at the open on Thursday, with global markets weighed down by jitters in the fixed income sector.
Financial spreadbetters expected Britain’s FTSE 100 to open down by 13-20 points, or 0.2-0.3 percent lower. Germany’s DAX was seen opening down by 10-28 points, or 0.1-0.3 percent lower, while France’s CAC 40 was expected to open down by 8-9 points, or 0.2 percent lower.
“The bond market moves are making investors quite anxious. I think everyone expected yields to rise once we started to see a bounce in oil prices as, naturally, this would change people’s inflation outlook,” said Oanda senior market analyst Craig Erlam.
“The pace at which they’ve risen has been quite surprising, which is probably a consequence of a lack of liquidity in the market at the moment. A small change in attitude can have a much greater impact,” he added.
Dealers added that a rebound in the euro currency, whose weakness this year has benefited European exporters, could also weigh on the region’s stock markets. > GLOBAL MARKETS-Dollar sags after weak data, bond rout resumes > US STOCKS-Wall St little changed in earnings, data lull > Nikkei falls on bond market rout, Konica Minolta jumps > TREASURIES-Yields rise on supply; demand strong for 10-yr auction > FOREX-Dollar nurses losses after weak retail sales, kiwi jumps > PRECIOUS-Gold near 5-week high as soft US data eases rate rise fears > METALS-London copper flat, supported by weaker dlr, China easing hopes
> Oil slips, economic worries offset US crude stocks draw (Reporting by Sudip Kar-Gupta)