Daily summary: Global equities under pressure amid surging bond yields

• The 10-year U.S. Treasury yield briefly topped the 1.6% level 
• Technology sector under pressure
• Upbeat economy data from the US

Most of European indices erased early gains and finished today's session lower as a surge in bond yields prompted investors to dump risk assets. DAX 30 experienced the strongest losses mainly due to a sharp sell-off of Bayer shares. The pharmaceutical giant said net profit for the period fell by around 78% to 308 million euros ($374.9 million) from EUR1.41 billion a year earlier. On the data front, the GfK consumer confidence for Germany came in above expectations and the Eurozone economic sentiment jumped  to an 11-month high.

US indices remain under pressure as surging bond yields reached fresh 1-year highs at 1.6% despite recent dovish comments from Fed Chair Powell. The move higher in yields put the benchmark rate above the S&P 500′s dividend yield, reducing the relative appeal of equities, which are already considered riskier assets. Higher yields completely overshadowed strong economic data  from the US which pointed to a sustainable economic recovery. Weekly jobless claims fell to a 3-month low of 730K, GDP growth for Q4 was revised higher to 4.1% and durable goods orders reached the highest levels in 6 months.

WTI crude fell more than 0.4% and is trading slightly below $63.00 a barrel, while Brent is trading 0.70%  lower around $66.50 a barrel. Elsewhere gold plunged more than 2% to $ 1,765.00 / oz, while silver is trading 1.8 % lower near $ 27.47 / oz due to surging Treasury yields.

Gold fell sharply today, however sellers failed to break below the key support at $1765.00 on the first attempt and price tested local resistance at $1778.00. However, if sellers will manage to regain control and bring the price below the aforementioned support, the way towards $1751.00 will be opened. Source: xStation5