LONDON—European shares fell on Wednesday after three straight days of gains, as signs in bond markets of pain ahead for the U.S. economy tempered hopes of a negotiated end to the Ukraine conflict. The broad Euro STOXX 600 fell 0.6 percent after three positive sessions that had taken the index back to levels reached before Russia invaded Ukraine. Benchmark indexes in Frankfurt and Paris lost 1.5 percent and 1 percent respectively, with London shares also slipping a touch. Bond investors had bet overnight that aggressive tightening of policy by the U.S. Federal Reserve could harm the world’s biggest economy over the longer term. The widely tracked U.S. 2-year-10-year Treasury yield curve briefly inverted on Tuesday for the first time since September 2019. Longer-dated yields falling below shorter ones indicate a lack of faith in future growth, with 10-year yields falling beneath 2-year rates widely viewed as a harbinger of recession. …
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