European stocks start quarter lower as global yields hit multi-year highs

European shares started the final quarter of ‌the year on a downbeat note on Thursday as investors turned risk-averse with global bond yields hovering at multi-year highs.

The pan-European STOXX ‌600 was down 1% at 628.1 points by 0720 ‌GMT, falling to its lowest level since mid-September. Most European sub-sectors declined, with banks leading the losses.

Global yields surged in September as investors sold government debt, ⁠while ​soaring energy ⁠costs fuelled inflation concerns and the AI boom strengthened growth expectations, reinforcing expectations ⁠that interest rates could remain higher for longer. The U.S. 10-Treasury yield ​jumped to a multi-decade peak of 5.3168%.

Oil prices, however, fell ⁠below the key $100-per-barrel level as recovering crude exports from the Gulf and ⁠a ​surprise rise in US inventories eased crude supply concerns. Focus later in the day will be on euro ⁠zone unemployment data, which could provide further insight into the strength ⁠of the economy.

Among ⁠individual stocks, UK's Gamma fell roughly 3% after Dutch private equity firm Waterland dropped its ‌takeover offer.