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European stocks close lower on bond yield spike and Fed bank capital decision

European markets closed lower on Friday after a spike in bond yields reignited concerns about stock valuations, while a U.S. Federal Reserve decision not to extend a pandemic-era rule that had allowed banks to relax capital levels further hit risk assets.

The pan-European Stoxx 600 closed the session about 0.8% lower. Banks were the worst performing stocks Friday, dropping 2.3% to lead losses as all sectors except utilities slid into the red.

U.S. stocks were mixed after the Fed declined to extend a rule expiring at the end of the month that relaxed the supplementary leverage ratio for banks during the pandemic.

Reference: CNBC