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

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LONDON, Oct 5 (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 benchmark index was down 0.3 percent by 0738 GMT. Germany’s DAX also declined 0.2 percent and the UK’s FTSE fell 0.3 percent.

Among top movers was Danske B ank, 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)