European Markets Extend Losses; US Jobs Data Fuels Fed Rate Cut Bets

European stock markets deepened losses on Wednesday, with Paris leading the decline at -3.0%. Milan fell 2.68% while Frankfurt dropped 2.71%. The sell-off coincided with a sharp drop in US Treasury yields following weaker-than-expected US employment figures. Two-year Treasury yields plunged 21 basis points and ten-year yields fell 14 basis points. The soft data prompted traders to significantly increase bets that the Federal Reserve will begin cutting interest rates as early as September.