European stock markets rise as FTSE 100 weighs; UK bond yields soar amid ruling party turmoil

European stock markets tick higher amid volatility in U.K. equities

European stock markets rise amid volatility in U.K. equities.

U.K. bond prices, as well as the FTSE 100, tumbled sharply after Prime Minister Keir Starmer failed to fully back Finance Minister Rachel Reeves in the wake of a government U-turn over welfare reforms.

The pan-European Stoxx 600 index provisionally closed 0.2% higher after a midday tumble into the red. Regionally, the U.K.’s FTSE failed to recover, ending the day 0.1% lower. France’s CAC 40 and Germany’s DAX were up 1% and 0.5%, respectively.

Banks in continental Europe are in the spotlight, having the best first-half returns since 1997, according to FactSet. The Stoxx 600 Banks index is up 29% in the first six months of this year.

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