European Shares Struggle Amid Global Economic Shifts

European shares struggled on Thursday, failing to replicate the gains in U.S. and Chinese markets. Concerns over inflation data and bond yields in the U.S. persisted, while China's potential fiscal stimulus and oil market fluctuations added to global economic uncertainties.

European shares faltered on Thursday, failing to mirror positive overnight trends from the U.S. and China, as investors faced high U.S. bond yields and awaited critical inflation data. The Stoxx 600 index fell by 0.17%, with German bond yields reaching a five-week peak.

In the U.S., inflation concerns dominated, as analysts debated the possibility of future interest rate cuts amid strong economic indicators like the GDP growth prediction and labor market trends. The 10-year Treasury yield hit its highest level since July, pushing the dollar to strengthen further against key currencies.

China's markets experienced volatility despite optimism about forthcoming fiscal stimulus, as detailed discussions are anticipated during a weekend finance ministry conference. Meanwhile, rising Middle East tensions affected oil prices, with Brent crude and WTI futures both seeing notable increases.

(With inputs from agencies.)