European stock markets open lower with Italy leading the decline and banking stocks under pressure

European stock markets opened broadly lower again, with Italy experiencing particularly heavy sell-offs. The overall backdrop remains firmly risk-off. Brent crude is trading above $107 per barrel, as renewed attacks on Saudi energy infrastructure this week have sparked fresh supply concerns, while the yield on 10-year US Treasury bonds has climbed above 5.02%, the highest since 2007. These two factors have compounded to intensify inflation worries just one day before the Federal Reserve decides on the next step in its monetary policy. Italy's benchmark index is leading losses following sharp sell-offs yesterday, with banking stocks once again under particular pressure. Yesterday's sell-off also extended to technology stocks (Prysmian and STMicroelectronics). US futures are also pointing lower, with S&P 500 futures down about 0.4% after technology stocks led losses on Wall Street yesterday. Nasdaq futures are currently down 0.3% on the day. The key issue in today's stock market is not just one factor going wrong, but rather the combined impact of oil prices above $100, US Treasury yields above 5%, a more hawkish Federal Reserve outlook, and lingering uncertainty over AI.