Rolling economic and financial news, as the rout in eurozone government bonds hits Europe’s equity marketsEuropean stock markets hit two-month lowBond yields hit 2015 highsReferendum talk in Greece 9.06am BST The FTSE 100 index is also being dragged down by supermarket chain Morrisons; its shares are down 6.6% after reporting that sales have continued to decline.Like-for-like sales, excluding fuel, slipped by another 2.9% in the last three months as the firm continues to struggle. 8.44am BST The general election is also weighing on the London stock market, as Brits head to the polls for the tightest race in decades.The softer open comes in the run up to the closest run UK election since World War 2. UK election complexion and majority rejection sees FTSE 100 continue its correction directionAs the UK goes to the polls, investors have plenty of other issues to focus on away from domestic politics.Yesterday saw core sovereign bond yields continue to head higher; Brent oil prices hit a new peak for the year, as US crude stocks fell for the first time since January; and Fed Chair Yellen suggested that the current level of equity market valuations is “quite high” and poses “potential dangers”. 8.37am BST Eurozone bonds are still fairly close to their record high levels (reminder, prices fall when yields rise), but the scale of the sell-off is quite startling.Anyone who piled into German bunds this year is now facing a loss.The German 10-year government bond #yield has risen an average of 7 basis points per day for the last seven days. pic.twitter.com/5P8SNF8aWk 8.30am BST European stock markets have hit their lowest levels in two months, as the bond rout hits confidence.The German, French, UK, Spanish and Italian markets are all in the red, following losses in Asia over night.“There are potential dangers there,” she said, in remarks reminiscent of her predecessor Alan Greenspan’s infamous 1996 warning that some investors were showing, “irrational exuberance”. Related: US Federal Reserve chair highlights concerns over ultra-low interest rates 8.18am BST The slide in eurozone government bonds is continuing this morning, driving up borrowing costs to the highest levels of the year.The yields, or interest rates, on German, French, Italian and Spanish sovereign debt has all risen again, as traders continue to push prices down from recent record highs.Bund sell-off continues. 10yr German govt bond yields jump to 0.66%, hit fresh high for 2015. pic.twitter.com/5KEoszrCXWITALIAN 10-YEAR BOND YIELDS RISE OVER 2 PERCENT FOR FIRST TIME SINCE DEC 2014 #italy #finance #newsThe euro and 10-year German bond yield. Closely correlated: pic.twitter.com/5TInSU5kKHBond market weakness has been a key theme across the US and European markets. This has now clearly started having an impact on equities with confidence being sapped out of the market. 8.16am BST Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.Coming up today.... the Greek bailout deadlock continues to dominate the eurozone, with speculation swirling that a referendum may be called.The meeting will take place amid increasing calls from SYRIZA MPs and members for any deal to be put to a referendum.Prime Minister Alexis Tsipras may take part in Friday’s gathering, giving him a chance to get a taste of the mood within his party. It is not yet clear if a central committee meeting will be held over the weekend or if Tsipras will wait for further progress to be made in the talks before the party body convenes."There is a strong feeling within #Syriza that there should be a referendum on the final agreement with creditors" http://t.co/arsQ4ae5Iareading the headlines on #greece is like plucking a damn daisy: we're near a deal, we're nowhere near a deal, we're near a deal...Final @guardian #GE2015 forecast: Cameron is unlikely to have the numbers to continue as PM http://t.co/0uE4TDYmvd pic.twitter.com/KMfV456LoN Related: Election polling day live: Tories and Labour neck and neck as UK polling stations open Continue reading...
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