European shares set for first monthly loss in six months on rising yields

Key facts

• European shares are set for their first monthly loss in six months.
• Rising global bond yields are weighing on European equities.
• The Iran conflict is contributing to an energy price shock.
• The Federal Reserve and the European Central Bank maintain hawkish policy stances.

European shares are heading for their first monthly decline in six months, as rising global bond yields reduce the appeal of riskier investments. This downward pressure is amplified by an energy price shock linked to the conflict in Iran and the persistent hawkish monetary policy stances adopted by major central banks, including the U.S. Federal Reserve and the European Central Bank.