LIVE MARKETS-Lower but calmly

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LOWER BUT CALMLY

European shares are lower in the first hour of trading, but in a fairly undramatic manner, collateral damage from a selloff in the Treasury market that has hurt U.S. futures.

The broad STOXX 600 .STOXX is down 0.55%, though that's less than the 1.2% decline for S&P 500 futures, and 1.5% for Nasdaq futures. EScv1, NQcv1

The benchmark 10-year Treasury yield is up nearly 8 basis points at 4.51% on worries about the U.S. finances, underscored by Moody's downgrade late on Friday. US/

The best European performers are Italian banks led by Banca BPER EMI.MI up 5.4% and Banca Monte dei Paschi up 4%. BMPS.MI

The complicated saga of Italian financial sector deal making took another turn over the weekend, when German Chancellor Friedrich Merz said Germany does not expect UniCredit CRDI.MI to launch a full bid for Commerzbank.

(Alun John)

EARLIER LIVE MARKETS POSTS:

LOTS GOING ON, EUROPEAN FUTURES OUTPERFORM CLICK HERE

MORNING BID: SO, CHINA SHOULD CONSUME MORE AND THE US LESS? CLICK HERE