Shell, Crest Nicholson, Marks & Spencer and many more could benefit from rising bond yields

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European equities have historically had a positive correlation with US bond yields, UBS noted, while analysts at Berenberg have looked at who might benefit most Royal Dutch Shell PLC, Standard Chartered and Crest Nicholson PLC are among the companies that could do best as bond yields continue to rise, according to analysis by investment banks. As almost all analysts agree, low bond yields have been a key support for equity markets since the 2008-09 global financial crisis, but those at UBS noted that though European equities have historically had a positive correlation with US bond yields (though not necessarily real bond yields, which take inflation into account). Bond yields are rising and are expected to continue to ruse over the coming six to 12 months as the global continues to (stutteringly) recover from the pandemic, inflation rates climb, central banks taper their bond-buying and begin to nudge interest rates higher. The 10-year US Treasury yield topped 1.5%
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