European Shares Fall Amid Surging Bond Yields

European stocks fell on Friday in the wake of rising U.S. bond yields as comments from Federal Reserve Chair Jerome Powell failed to ease concerns around both a spike in inflation and a sustained rise in interest rates.

The pan European Stoxx 600 fell 0.8 percent to 408.46 after declining 0.4 percent in the previous session. The German DAX and France’s CAC 40 index dropped over 1 percent each, while the U.K.’s FTSE 100 was down 0.7 percent.

Stellantis NV rose 0.7 percent after announcing conditional distribution of Faurecia shares and cash.

Norsk Hydro, one of the world’s largest aluminum producers, gained 1.5 percent after it agreed to sell its rolling business to private equity firm KPS Capital Partners.

Stock Exchange Group LSE lost 5 percent despite announcing a dividend increase and issuing an upbeat outlook.

Equipment rental company Aggreko advanced 1.3 percent after it backed a 2.32 billion pound ($3.22 billion) buyout offer from private equity firms TDR Capital LLP and I Squared Capital.

Investors ignored data from Destatis showing that German factory orders grew more than expected in January, driven by foreign demand.

Factory orders expanded 1.4 percent month-on-month in January, reversing a revised 2.2 percent fall in the previous month. Orders were forecast to climb 0.7 percent.

U.K. house prices dropped for the second straight month in February, data released by the Lloyds Bank subsidiary Halifax and IHS Markit showed. House prices fell 0.1 percent sequentially, slower than the 0.4 percent decline seen in January.