To The Moon

European stock markets fell on Friday as ongoing Middle East tensions and rising inflation concerns pushed bond yields higher, pushing some regional indices into correction territory. The Stoxx Europe 600 index closed down 1.8%, marking its third consecutive weekly decline, the longest losing streak in nearly a year. The sell-off drove France's CAC 40 and Sweden's OMX 30 indices into correction, with both benchmarks falling more than 10% from their February peaks. Interest-rate-sensitive sectors, often viewed as bond alternatives, led the declines, with utilities and real estate among the hardest hit. Germany's 10-year government bond yield climbed above 3%, while UK government borrowing costs reached their highest level since the global financial crisis. Reports that the Pentagon is deploying three warships and thousands of additional Marines to the Middle East further dampened market sentiment. "Soaring bond yields are bound to impact an equity market that had grown overly complacent," said Neil Birrell, Chief Investment Officer at Premier Miton Investors. "Sooner or later, investors will realize that not everything is going smoothly."