European Stocks Decline Under Pressure from Rising Bond Yields

European stocks fell on Friday due to rising bond yields, while comments from Jerome Powell, the Chair of the Federal Reserve, undermined investor hopes for interest rates reaching their peak. The Stoxx 600 index dropped 0.4% by 0810 GMT but is still on track to record gains for the second week. Federal Reserve officials, including Powell, expressed doubts on Thursday about whether their fight against inflation is over and added that they will continue to tighten monetary policy if necessary. Markets perceived these comments as highly hawkish, coming after policymakers at the European Central Bank and the Bank of England resisted expectations for interest rate cuts. Shares of Richemont fell 3% after the Swiss luxury goods group reported lower-than-expected profits.