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European Markets Close 1% Lower Amid Inflationary Pressure; TeamViewer Tumbles 25%

Odd Andersen | AFP | Getty Images
  • The pan-European Stoxx 600 provisionally ended down 1%, with all sectors and major bourses in negative territory.
  • Retail, autos and travel and leisure stocks were among those leading the losses, down over 2.5%.

European stocks closed lower on Wednesday as U.S. Treasury yields briefly spiked, with inflation concerns continuing to weigh on global markets.

The pan-European Stoxx 600 provisionally ended down 1%, with all sectors and major bourses in negative territory. Retail, autos and travel and leisure stocks were among those leading the losses, down over 2.5%.

The benchmark U.S. 10-year Treasury yield retreated from more than three-month highs on Wednesday, as investor jitters over the potential for persistent higher inflation endured. The jump in bond yields has caused investors to flee highly valued tech stocks in the U.S., as higher rates make their future profits less attractive.

Elsewhere, U.S. stocks dipped as October's volatility persisted and shares in Asia-Pacific were mostly lower.

In terms of individual share price movement in Europe, British grocery giant Tesco climbed almost 6% after upgrading its outlook following strong first-half results.

At the bottom of the European blue chip index, German software development company TeamViewer tumbled over 25% after it cut full-year guidance and reported weaker-than-expected quarterly results.

On the data front, German industrial orders fell more sharply than expected in August as overseas demand weakened. Spanish industrial output rose 1.8% year-on-year in August, well below the 3.5% Reuters consensus forecast.

Investors in the region kept an eye on U.S. data on Wednesday, as payroll processing firm ADP reported U.S. companies shook off worries over the Covid delta variant and hired at a faster-than-expected pace in September. The closely watched nonfarm payrolls report for September is slated for release on Friday.

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- CNBC's Hannah Miao and Eustance Huang contributed to this market report.

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