Global Market: European shares fall as rising yields, oil lift risk concerns

European shares edged lower on Wednesday, snapping a three-session winning streak, as rising oil prices and higher global bond yields weighed on investor sentiment.

The pan-European STOXX 600 index fell 0.4% to 633.98 points by 0823 GMT, with technology and mining stocks among the biggest decliners.

Oil prices climbed nearly 1% as investors assessed potential supply disruptions from a storm approaching U.S. oil-producing regions, while attacks by Yemen's Iran-backed Houthis on Saudi Arabia added to concerns over Middle East supplies. At the same time, increased crude availability from the region limited the upward pressure on prices, Reuters reported.


Bond yields in the United States and Europe moved higher, adding to pressure on equities as investors reassessed the outlook for interest rates and government borrowing.

French government bond spreads also widened, reflecting renewed concerns over the country's deteriorating fiscal position ahead of next year's presidential election.

Persistent worries about France's public finances have kept pressure on its bond market and the euro.

Among individual stocks, Britain's Pennon Group plunged 15.4% after the water utility announced a fully underwritten 550 million pound ($728.5 million) rights issue and cut its dividend as part of efforts to address operational difficulties.

The moves left European markets vulnerable to developments in energy prices, bond yields and political and fiscal risks as investors weighed the broader economic outlook.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)