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European stocks decline as bond yields rise
European stocks declined at the start of the last quarter of 2026, as global bond yields reached their highest levels in years, leading to a 1% drop in the STOXX 600 index to its lowest level since mid-September. This occurred amid concerns over inflation and energy costs, along with expectations of extended high interest rates, as the yield on the 10-year U.S. Treasury bond surged to 5.3168%. Oil prices also fell below $100 per barrel, amid rising U.S. stockpiles and a rebound in Gulf exports, with European unemployment data expected to be released later today.
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