March 3, 2020 / 1:17 PM / a month ago

European stocks shed gains, yen and bond yields rise after G7 statement

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, February March 3, 2020. REUTERS/Staff

LONDON (Reuters) - European stocks shed gains, the Japanese yen rose and bond yields fell after markets were disappointed by the G7’s statement on tackling the coronavirus.

G7 finance ministers and central bank governors said in a statement following a teleconference that they reaffirmed their commitment to use all appropriate policy tools to support the economy against the coronavirus.

They said finance ministers are ready to take fiscal measures where appropriate, while central banks will continue to support price stability and economic growth while maintaining the resilience of the financial system.

“It’s been met with disappointment in markets. The statement was in line with expectations, saying they will monitor the situation without any specifics,” said Antoine Bouvet, senior rates strategist at ING.

European stocks shed some gains after the G7 announcement but were still trading up 1.9%. .

The Japanese yen - a currency that rises in times of uncertainty - extended gains against the dollar to hit the day's high of 107.60, trading 0.6% higher on the day after the statement. JPY=

10-year German bond yields fell from the day’s high having risen in earlier trade on expectations of central bank stimulus. They were last up 2 basis points at -0.60% DE10YT=RR

Reporting by the London Markets Team; writing by Yoruk Bahceli; Editing by Ritvik Carvalho

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