LONDON — European stocks are expected to open lower Wednesday as global markets take a downturn after a sell-off on Wall Street on Tuesday, prompted by rising bond yields and worse-than-expected earnings.

The U.K. FTSEIndex is opening at 7.533, Germany, 31 points below DAX 73 points lower at 15,700, France’s CAC 40 down 34 points at 7,100 and Italy’s FTSE MIBAccording to data from IG, it was 158 points less at 27,325,

Following a Wall Street sell-off that was caused by rising bond yields, the open is lower in Europe. This led to global markets falling in the preceding trading session.

U.S. bond yieldsThe 10-year Treasury topped 1.87% on Tuesday, continuing their upward climb over the past year. This is its highest point in two years. At 1.5%, the 10 year yield began the year. Meanwhile, the 2-year rate — which reflects short-term interest rate expectations — topped 1% for the first time in two years. The prices are affected by bond yields.

Investors remain nervous about the U.S. Federal Reserve’s plans to increase interest rates and tighten their ultra-loose Pandemic-era Monetary Policy.

The major U.S. indexes were also affected by Goldman Sachs failing to meet analysts’ expectations. fourth-quarter earnings. With reports from Bank of America and Morgan Stanley slated before U.S. trading starts.

U.S. stock futures were steady in overnight trading while Asia-Pacific markets fell on Wednesday following the sell-off on Wall Street.

Earnings in Europe come from Richemont, WH Smith, JD Wetherspoon Burberry on Wednesday while data releases include U.K. inflation producer price data for December and euro zone construction output for November.

— CNBC’s Maggie Fitzgerald contributed to this market report.