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BREAKING NEWS

European shares dip as yields bite ahead of U.S. job data

European shares dip as yields bite ahead of U.S. job data
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 4, 2018. REUTERS/Staff -
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LONDON (Reuters) - European stock markets opened lower on Friday as rising yields continued to take their toll while investors waited for a U.S. job data report to shed some light on whether higher interest rate will be required to prevent the economy from overheating.

U.S. Treasury bond yields are on a seven-year high, echoing a market correction in February when rising yields of risk-free government debt made equities less attractive and lowered their value.

The pan-European STOXX 600 <.STOXX> benchmark index was down 0.3 percent by 0738 GMT. Germany's DAX <.GDAXI> also declined 0.2 percent and the UK's FTSE <.FTSE> fell 0.3 percent.

Among top movers was Danske Bank , which is facing a U.S. criminal investigation into a 200 billion euro ($230 billion) money laundering scandal at its Estonian branch. Its shares were down 8.7 percent after a rating cut by Credit Suisse.

Shares in Intu Properties soared 25 percent Friday after a consortium, including British billionaire John Whittaker and Canada's Brookfield Asset Management , said it was considering a bid for the shopping centre owner.

(Julien Ponthus)

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