Key facts
- European stocks started the fourth quarter lower.
- The STOXX 600 index was down 1% at 628.1 points by 0720 GMT.
- Global bond yields surged in September, reaching multi-year highs.
- The U.S. 10-year Treasury yield reached a multi-decade peak of 5.3168%.
- Oil prices fell below $100 per barrel.
- UK's Gamma Communications fell 3% after Waterland dropped its takeover offer.
European stocks began the final quarter of the year on a downbeat note on Thursday, with the pan-European STOXX 600 index falling 1% to its lowest level since mid-September. Investors turned risk-averse as global bond yields hovered at multi-year highs.
Global yields surged in September as investors sold government debt. Soaring energy costs fueled inflation concerns, while the AI boom strengthened growth expectations, reinforcing the view that interest rates could remain higher for longer. The U.S. 10-year Treasury yield jumped to a multi-decade peak of 5.3168%.
However, oil prices fell below the key $100-per-barrel level as recovering crude exports from the Gulf and a surprise rise in U.S. inventories eased supply concerns.
Later in the day, focus will be on euro zone unemployment data, which could provide further insight into the strength of the economy.
Among individual stocks, UK's Gamma Communications fell roughly 3% after Dutch private equity firm Waterland dropped its takeover offer.