European shares slide as firmer yields, China woes weigh

European shares extended losses on Tuesday as elevated bond yields pressured the rate-sensitive technology sector, while weakness in China-exposed stocks persisted on slowdown jitters in the world's second-largest economy. The pan-European STOXX 600 shed 0.7% by 0710 GMT, as the benchmark 10-year Bund yield hit its highest level since 2011.

European shares extended losses on Tuesday as elevated bond yields pressured the rate-sensitive technology sector, while weakness in China-exposed stocks persisted on slowdown jitters in the world's second-largest economy.

The pan-European STOXX 600 shed 0.7% by 0710 GMT, as the benchmark 10-year Bund yield hit its highest level since 2011. Technology stocks, whose valuations come under pressure as yields rise, slid nearly 2% to lead sectoral losses.

Rate-sensitive real estate stocks eased 1.3%. China-exposed luxury stocks such as LVMH and Richemont weakened 1.5% and 2.5%, respectively, amid lingering concerns over the crisis-hit Chinese property sector.

Shares of Rio Tinto slipped 0.4% after its majority-owned uranium unit, Energy Resources of Australia , earlier in the day forecast a material cost overrun and delays related to the rehabilitation of its Ranger mine in the Northern Territory.