European shares steadied on Thursday as investors held back amid bond market jitters, while a weak forecast from British budget airline Jet2 dragged the travel and leisure sector.
The pan-European STOXX 600 wobbled in early trade and was last flat at 546.93 points at 0722 GMT.
Travel and leisure fell 1.2%, with Germany’s TUI and Easyjet down over 4% each.
British low-cost airline and travel firm Jet2’s shares lost a quarter of its value after forecasting full-year operating profit to be towards the lower-end of its expectations.
Porsche slipped nearly 1% as the luxury car maker’s stock was to be relegated to the German mid-caps index following recent losses in its shares, hurt by U.S. import tariffs and weakening demand in key market China.
Caution prevailed as concerns over debt-fuelled fiscal spending by developed market governments resurfaced this week, sparking volatility in European stocks and longer-dated bonds.
Later on Thursday, focus will shift to debt auctions in France and the United Kingdom, which have been at the center of Europe’s bond selloff.
(Reporting by Tristan Veyet in Gdansk and Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
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