DAX leads European stocks lower as Treasury selloff steepens yield curve; silver hits record, oil firms
European equities slipped, led by a more than 1% drop in Germany’s DAX, as a bear‑steepening in U.S. Treasuries tightened global financial conditions and damped risk appetite. Safe-haven metals outperformed, with silver printing a record high, while Bitcoin slumped.
Key points for traders
- DAX -1.04% to 23,589.45; CAC 40 -0.32% to 8,097.01; FTSE 100 -0.18% to 9,702.54
- Spain’s IBEX 35 +0.11% to 16,388.99; Italy’s FTSE MIB -0.22% to 43,259.47
- Wall Street: Dow -0.43%, S&P 500 -0.19%, Nasdaq -0.17% (off lows, near session highs)
- U.S. yields jump: 2Y 3.536% (+4.6 bps), 5Y 3.663% (+6.6 bps), 10Y 4.092% (+7.3 bps), 30Y 4.743% (+7.3 bps)
- Crude oil +$0.75 (~+1.20%); gold $4,232.12 (+$30.65, +0.32%)
- Silver $58.39 (+$2, +3.57%), a new record; Bitcoin $84,624 (-$5,700), pacing worst day since October 10
European stocks: risk tone softens
The downbeat tone across Europe was broad, with rate‑sensitive names and cyclicals lagging as funding costs climbed. Germany’s export‑heavy DAX underperformed peers, while France’s CAC 40 and the UK’s FTSE 100 posted modest declines. Spain’s IBEX 35 eked out small gains, suggesting select support in financials and defensives.
Elevated global yields continue to pressure equity valuations, with the latest move driven by a bear steepening—long‑dated U.S. yields rising faster than short‑dated ones—typically a headwind for growth shares and higher‑beta segments.
Rates and FX: bear steepening tightens conditions
Treasury yields advanced across the curve, with the 10‑year rising to 4.09% and the 30‑year to 4.74%. The steepening points to shifting term‑premium dynamics and a reassessment of the policy path, a mix that usually supports the U.S. dollar and weighs on global risk appetite. For FX, higher U.S. real yields tend to cap EUR/USD and GBP/USD rallies and can pressure high‑beta and commodity‑linked currencies. Liquidity conditions were orderly but tilted defensive.
Commodities: silver’s breakout, oil steadies
Commodities diverged. Crude oil rose roughly 1.2%, with traders citing positioning and supply anxieties, while precious metals rallied despite higher yields—a sign of safe‑haven and momentum demand. Gold edged to $4,232, and silver surged 3.6% to $58.39, marking a new record high. In digital assets, Bitcoin fell $5,700 to $84,624, on track for its steepest single‑day drop since October 10, as higher yields curbed risk exposure.
Wall Street hand‑off
U.S. equities were lower but off intraday troughs as dip‑buyers emerged into the close. The Dow industrials fell 0.43%, the S&P 500 0.19% and the Nasdaq 0.17%. Equity volatility stayed contained, yet the upward drift in yields kept a lid on tech leadership and valuation‑sensitive sectors.
What’s next
With rate expectations and term premiums back in focus, traders will watch incoming macro signals and central‑bank commentary for clues on the durability of the yield move. The balance between growth data and inflation progress remains central for FX direction, equity multiples and commodity momentum, BPayNews notes.
FAQ
Why did European stocks fall today?
Rising U.S. Treasury yields drove a bear‑steepening of the curve, tightening global financial conditions and pressuring equity valuations. Rate‑sensitive and cyclical shares led declines, with Germany’s DAX dropping over 1%.
What is a bear‑steepening and why does it matter?
A bear‑steepening occurs when long‑term yields rise faster than short‑term yields, typically reflecting term‑premium or growth/inflation repricing. It usually weighs on equity valuations and supports the U.S. dollar, impacting global risk assets and FX.
How did major European indices close?
DAX -1.04% to 23,589.45; CAC 40 -0.32% to 8,097.01; FTSE 100 -0.18% to 9,702.54; IBEX 35 +0.11% to 16,388.99; FTSE MIB -0.22% to 43,259.47.
What does the move in U.S. yields imply for FX markets?
Higher U.S. yields, especially real yields, generally bolster the dollar and can pressure the euro, pound and high‑beta currencies. The steeper curve tightens global financial conditions, often curbing risk‑on FX flows.
Why did silver hit a record while yields climbed?
Beyond macro rates, silver is influenced by momentum, safe‑haven demand and industrial usage expectations. A breakout can attract trend‑following flows, overwhelming the usual headwind from higher yields.
What were the notable moves in other assets?
Crude oil rose about 1.2%, gold advanced to $4,232, silver set a record at $58.39, and Bitcoin slid to $84,624, heading for its worst day since October 10.
Last updated on December 1st, 2025 at 05:22 pm
