European stocks are poised to extend gains on Wednesday as a sharp drop in oil prices eases inflation and interest-rate concerns. Brent crude futures fell below $79 a barrel, extending losses for a third straight session and bringing the weekly decline to over 10 percent amid rising optimism over a potential interim deal to reopen the Strait of Hormuz. The pullback in oil reduced pressure on global bond yields, with 10-year U.S. Treasury yields falling to 4.6187 percent from last week's high of 4.747 percent. Overnight, U.S. stocks rose for a fourth straight session to record highs, with the Nasdaq Composite surging 2.6 percent, the S&P 500 up 1.8 percent, and the Dow advancing 1.7 percent. European stocks also hit a record high on Tuesday, with the pan-European STOXX 600 climbing 0.7 percent.
Oil slump eases inflation fears, reducing pressure on bond yields, so 10-year Treasury yield falls.
