European stocks remain under pressure as US yields stay high

European shares extended losses on Tuesday as a surge in U.S. Treasury yields and the dollar mounted pressure on risky assets like equities and commodities, while downbeat brokerage views weighed on fashion retailers. Strong economic data and the passage of a U.S. funding bill to avert a federal government shutdown boosted the dollar to 11-month highs and the 10-year Treasury yield to a fresh multi-year peak.

European shares extended losses on Tuesday as a surge in U.S. Treasury yields and the dollar mounted pressure on risky assets like equities and commodities, while downbeat brokerage views weighed on fashion retailers.

Strong economic data and the passage of a U.S. funding bill to avert a federal government shutdown boosted the dollar to 11-month highs and the 10-year Treasury yield to a fresh multi-year peak. The pan-European STOXX 600 index fell 0.3%, hovering around the six-month low touched in the previous session. Utilities and miners were the biggest sectoral losers.

Shares of German online fashion retailer Zalando slid 2.8% after Deutsche Bank cut forecast for adjusted earnings before interest and taxes, while British luxury firm Burberry dropped 3.1% following a UBS downgrade. Novo Nordisk climbed 1.9% after a U.S. patent office tribunal denied requests by Mylan Pharmaceuticals to review the validity of the patents owned by Novo covering the active ingredient in its weight-loss and diabetes drugs Wegovy and Ozempic.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)