LONDON: A selloff in European stock markets gathered pace, hitting their lowest levels for the day, while government bond yields in the bloc fell to fresh lows on Friday after US activity data missed expectations.
The numbers came on top of weak German and euro-zone manufacturing activity data earlier in the day that had already exacerbated fears about a slowing global economy.
Pan-European stocks hit session lows after the US PMI data, with the STOXX 600 down 0.94 percent at 1359 GMT. Europe's banks index extended losses, down 2 percent and on track for their worst day since Feb. 7.
Ten-year British government bond yields dropped more than 4 basis points on the day to 1.021 percent, their lowest since September 2017, while the 2-year/10-year gilt yield curve was its flattest since August 2016 when the Bank of England launched a stimulus programme after the Brexit referendum.
Germany's 10-year bond yield fell to a new low of minus 0.023 percent, down over 5 bps on the day, tumbling as US bond yields fell.
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