European markets fall as Belgian interest rates rise
European financial markets came under pressure on Monday morning, as fears of further escalation in the war involving Israel, the United States and Iran weighed on investor sentiment.
Stock markets across the continent opened sharply lower. In Brussels, the Bel20 index was down around 2.3 per cent at 4,803.72 points by 9:30 a.m., with nearly all listed companies trading in negative territory. Losses were also recorded elsewhere, with Paris falling 1.44 per cent, London 1.46 per cent, Milan 1.76 per cent and Frankfurt 1.89 per cent.
At the same time, Belgian long-term interest rates continued to climb. The yield on ten-year government bonds rose above 3.7 per cent, reaching its highest level since early 2012, during the eurozone debt crisis.
The rise reflects broader movements on bond markets, where geopolitical uncertainty and higher energy prices are pushing up borrowing costs. For households, this typically translates into more expensive mortgages, while for the government, it increases the cost of financing public debt.
European Central Bank © PHOTO KIRILL KUDRYAVTSEV / AFP
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